Good morning, everyone, and welcome to the 2021 Barnes Virtual Investor Day. My name is Bill Pitts, and I'm Vice President of Investor Relations. We thank you for joining us on today's webcast, as we truly appreciate your time and interest in our company. We're happy this morning to talk to you about the Barnes story, our growth opportunities, and value creation strategy. You will hear from members of our senior leadership team and have the ability to ask questions of them. By the end of this morning's session, I am confident that you will have a better understanding and appreciation for the exciting journey we're on here at Barnes. Moving now to our agenda. We will have a series of presenters this morning, beginning with Patrick Dempsey, our President and Chief Executive Officer, who will lay out key elements of the Barnes Group strategy. Following Patrick, Pat Hurley, Senior Vice President and Chief Technology Officer, will discuss our innovation efforts. When Pat has finished, Lukas Hovorka, our Senior Vice President, Corporate Development, will talk about our mergers and acquisition framework. As Lukas finishes, Dawn Edwards, our Senior Vice President, Human Resources, will talk about our talent management system and leveraging that to create a high-performance organization. When Dawn has finished, we will have our first Q&A session focused on our first group of speakers. After that, we'll have a short break. When we return from the break, our segment presidents, Steve Moule from the industrial segment, and Mike Beck from the aerospace segment, will provide a deeper dive into their businesses. When they have finished, our Senior Vice President and Chief Financial Officer, Julie Streich, will talk to us about our Barnes financial performance and lay out our 2025 financial targets. After Julie, Patrick will return to the stage and provide his closing remarks. We'll follow that with our second Q&A session focused on the presenters in the second group. Keep in mind, during today's event, we will be making forward-looking statements. These statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements, including risks and opportunities discussed in our financial filings with the Securities and Exchange Commission. In addition, we'll be talking about adjusted financial results. GAAP reconciliation tables have been provided in the appendix of our presentation materials, which are available for download at our corporate website in the investor relations section at www.bginc.com. At any point in time this morning, using the Q&A functionality within the event platform, you can submit a question, and we'll try to address as many questions as possible during the time allotted in our Q&A sessions. With that, I'd like to turn the event over now to our President and Chief Executive Officer, Patrick Dempsey. Hello. My name is Patrick Dempsey, President and CEO of Barnes Group. Thank you for joining us today. I'm very happy to be able to share with you some of the many exciting things that are happening here at Barnes, and more importantly, to provide you with the opportunity to meet my leadership team and hear directly from them the great things that they're driving relative to our growth strategy. Another important aspect of today is the fact that you'll hear about our new brand, which we launched just recently and captures the very transformation that you'll hear about over the course of the morning. Let me start by sharing with you some of the key messages that you'll hear throughout my presentation. First, that we have a portfolio of businesses that are well-positioned with unique, sustainable, competitive advantages as we continue to add new technologies to our portfolio and enter into new markets such as medical and automation. In terms of our Barnes Enterprise System, you'll hear how we're leveraging it as our total operating system to achieve commercial, operational, and financial excellence. You'll also learn about our relentless focus on innovation and our investments that we're making to drive differentiated new products, services, and processes. You'll also see how we're investing in our talent management system to grow and develop our employees. Finally, you'll hear about how we're focused on creating sustainable value for all of our stakeholders, our employees, our customers, our shareholders, and our communities. As I just mentioned, we just launched our new brand, and as part of that process, we had the opportunity to step back and reflect as to why it is we exist as a company and where it is we want to take the company. With that, we created a purpose statement to advance what's possible through the relentless pursuit of next. We feel that this captures the very essence of our employees in terms of their forward-thinking and innovativeness. With respect to our vision to pioneer technologies that help change the world, again, we feel this represents the passion and energy of our employees and how they're looking to truly make a difference in the world through our products and services. Finally, the Barnes Values. This is the bedrock on which the company has been founded. It's about how we do business on a daily basis. I'm very proud of how our employees conduct business to the highest standards, acting as one team and one company. As we've continued to build out our portfolio, today, Barnes Group is a global provider of highly engineered products, differentiated industrial technologies, and innovative solutions, serving a wide range of end markets and customers. This year, we're forecast to achieve approximately $1.3 billion in revenues, spread across all three regions of the world, the Americas, Europe, and Asia. Our business is comprised of two business segments, aerospace and industrial, and you'll hear from both Mike Beck and Steve Moule later on this morning, more detail about both of their businesses. The final item that I draw your attention to is the fact that Barnes has been paying a dividend now for 87 consecutive years. As we continue to build out our capabilities, at the core of that is building or creating superior value for our customers. As we continue to control our own destiny by becoming the OEMs of our own products and services, we're looking to build capabilities from initial concept to production to in-service support. As depicted here on the slide, the logos of our many customers, you'll see that each one of them are industry leaders, which I believe is a testimony to the highest esteem in which the Barnes brand is held and the reputation of the company in terms of high performance and reliability. As we continue to build out our capabilities, Barnes has a history and a reputation for innovation and manufacturing expertise. It's a legacy that dates back to 1857 and speaks volumes to how our employees have continually reinvented themselves and adapted to change. It's off of this foundation that we're looking to accelerate our growth forward. We're continuing to add new competitive advantages to our business in the form of design engineering, application engineering, software development, and data analytics. We're continuing also to add mission-critical technologies as a part of our offering, and also making significant investments in new growth platforms, including strategic marketing and digitalization. Today, I'm very honored to be able to introduce you to the Barnes senior leadership team. Each person brings unique skills and a diversity of experiences that allow us to operate together as a successful team. Since our last Investor Day in 2017, there have been three major additions. Julie Streich, our CFO, Steve Moule, our President of Industrial, and Pat Hurley, our Chief Technology Officer. I'd also like to take a moment to pay tribute to Mike Beck, our President of Barnes Aerospace. Mike recently announced his intentions to retire, and we wish him every success in this next chapter of his life. Mike will work with us to ensure a smooth transition through April 2022. I'm equally as honored to introduce to you our board of directors. Each of them provide valuable insight and oversight of our business and ensure its success. We continue to add new talent and diversity to our board to align with our new strategy and the vision to where we're taking the company. Two more recent additions include Daphne Jones and Jakki Haussler. As we continue on our transformational journey, it may be beneficial for some investors to highlight to where it is we come from, where we are today, and where it is we're going. As we began our transformational journey, our company was basically cyclical in nature, overweight the U.S., had approximately 300 patents, and was focused on manufacturing and distribution. We made a very strategic decision to divest of our distribution businesses, both in North America and Europe. With that, we embarked upon an acquisition strategy, completing seven acquisitions, primarily focused on technology, which brings us to where we are today. Our portfolio is more secular in nature, globally balanced, has approximately 1,100 patents and a new set of core competencies, including design engineering, application engineering, as well as having entered into new markets such as automation, medical, and personal care. Where does that leave us to where we're going? Well, we're really excited because in many ways, we feel like we're just getting started. Our recent acquisition of Gimatic puts us in a great place to capitalize on more automation. We're continuing to build out a diversified high-performance portfolio. Our emphasis is more on digitally-enabled solutions, advanced manufacturing, and business models that drive recurring revenue. All in, we're so excited about where it is we're going to take this company. As we continue to develop our strategy, it's been also very deliberate in terms of aligning it around macro trends for higher growth. These trends include automation, aging population, electric vehicles, consumer sustainability, and more and more the shift to a connected world. We believe Barnes is very well-positioned to take advantage of these trends. Our recent acquisition of Gimatic positions us well in the automation space and will act as an anchor for to build out that platform. We continue to focus on medical end markets across our portfolio, but particularly within Molding Solutions. We've launched a number of new products into molecular diagnostic markets, as well as food and beverage. We continue to advance our lightweighting with our hot runner and sheet metal forming technologies. All of these with a view to propelling us forward in terms of our growth strategy. That brings us to our Barnes Profitable Growth Strategy, which we've synthesized down into four pillars. One, to build a world-class company focused on high margin, high growth. Two, to leverage our Barnes Enterprise System as a true competitive advantage. Three, to expand and protect our IP to deliver differentiated solutions. And four, to create value for all our stakeholders. Let me go into a little greater detail on each one of these. The first pillar is build a world-class company focused on high growth and high margin businesses. Our approach is to build a portfolio of closely aligned businesses, ones which can leverage a common set of attributes and are also aligned with the macro trends that I just mentioned. These attributes involve driving a customer-centric culture, building out best-in-class business processes that are scalable, expanding globally and being local for local, and also investing in our leadership and in their talent. Finally, to look at creative business models that can be leveraged across the portfolio, in particular across aftermarket. The second pillar of our strategy is around the Barnes Enterprise System, which we believe is our most effective value creation lever. It all begins with culture, and we believe that if you win the hearts and minds of our employees, then the rest falls into place. We continue to drive alignment across the organization through a common vision and purpose, and build out business processes that are best in class and ultimately drive results. At the end of the day, the Barnes Enterprise System allows us to sell, deliver, and realize our value through commercial, operational, and financial excellence. Within the framework of the Barnes Enterprise System, it captures all of the initiatives that we're driving for growth. These include strategic marketing, digitalization, innovation, ESG, and talent management. Each one of these initiatives we believe are strategic enablers for our growth strategy. As it pertains to ESG, this has been at the heart of who we are as an organization since the beginning of time. We've always prided ourselves on being good corporate citizens, taking care of our environment, empowering our employees, and providing good, best-in-class governance. In 2014, we launched our ESG report and have continued to build upon it each year ever since. We've also set 2025 reduction targets for water usage, process waste, and emissions. We continue through the Barnes Group Foundation to contribute over $1 million a year to organizations within our community. As an organization, we're also committed to diversity, both across the enterprise and on our board. The last item I'd bring your attention to, which we're very proud of, is the fact that Barnes was recognized as one of America's most responsible companies by Newsweek for 2021. The third pillar of our strategy is around intellectual property and leveraging it as a core differentiator. We've made significant investments into innovation and technology over the past few years. At the depths of the pandemic, we made the bold decision to launch our new innovation hub. Pat Hurley, our CTO, will share some more details about the great things that are happening there shortly. At the heart of our innovation, it's about building in intelligence into everything we do and everything we make. At the core of that intelligence, we believe, is digitalization as a growth accelerator, whether it's in terms of enhancing the customer experience or driving business excellence. As we think about examples of selling our value through commercial excellence, here we see digital tools as enablers to accelerating that process. Examples might include digital marketing, customer relationship management tools, CRM, or even self-service design configurators. On the operation side of the house, our emphasis is on smart connected factories to drive efficiency and productivity. We also see opportunities for remote monitoring and control of our processes, as well as gathering of data to provide new insights in areas such as predictive maintenance. That brings us to our fourth pillar of our strategy, which is about creating value for all stakeholders. What this means for our employees is providing them opportunities to grow, learn, and prosper. What it means for our customers is that we provide them with high performance, value-added products and services. For our shareholders, it means us being good stewards of their capital and using it wisely to drive consistent profitable growth. Finally, our communities with respect to being good corporate citizens, both engaging in and giving back to our community. Speaking to value, let me introduce our 2025 financial targets. Let me start with the top line. We've set a target of 7%-9% organic sales CAGR, 15%-17% adjusted operating margin, double-digit EPS CAGR, greater than 100% cash conversion, and 8%-10% return on invested capital. I must note that none of these targets include future acquisitions or divestitures. With that, let me conclude my presentation and share with you some of the things that you've just heard. First and foremost, we have a great portfolio of businesses that are well-positioned with unique, sustainable competitive advantages. We continue to add new technologies and enter into new markets such as automation and medical. Second, that we continue to leverage the Barnes Enterprise System as our total operating system, allowing us to achieve commercial, operational, and financial excellence. Third, that we have a relentless focus on innovation, focused on our customers and creating true differentiated value through new products, services, and processes. Fourth, we place extreme value on our employees and leveraging talent. We've developed a talent management system to create a high-performing global workforce. Last but not least, we're focused on creating sustainable value for all of our stakeholders, our employees, our customers, our shareholders, and our communities. With that, thank you for your time this morning. Let me now hand it over to Pat Hurley, our Chief Technology Officer. Good morning. My name is Patrick Hurley, and I'm the Senior Vice President and Chief Technology Officer for Barnes Group. Today, I will be presenting on our differentiated approach to innovation. Before we get started, I wanna walk everybody through an outline, or more importantly, three key messages that I would like everybody to take away from today's presentation. Number one, it's about how we're pioneering new technologies to truly change the world, and how we've built an innovation ecosystem where we're leveraging digital technologies for sustainable long-term organic growth. Number two, it's about how we get our work done and how we're using a modular technology approach which gives our customers the optionality and flexibility that they need. Number three, innovation in action. I'll be giving some specific examples of projects that we're working on. More importantly, you will hear a common theme throughout, how we're truly leveraging our portfolio synergies across all of Barnes Group. Managing for total innovation, or more importantly, persistent ingenuity, making sure that we're pushing the boundaries of what is possible. Our goal is to be one to two generations ahead of our competition. To do this, we need to make sure that we have a well-balanced innovation portfolio that is not only focused on the short term, but more importantly, the mid and the long term, what I call the applied and the fundamental opportunities. When we think about the long term, ESG must come into play. It's about how our business can positively impact the environment and making it clear that Barnes Group is part of the solution. Now as we move to the center of the slide, skill sets are absolutely critical for where we're going, but they're not sufficient. We need to make sure that we're building in the right processes, procedures, and more importantly, the right infrastructure for us to be successful. Technology is evolving at such a rapid pace that we need to make sure that we're doing things differently, that we're accounting for technology today, and we need that bridge. It's not only about what we're doing within our internal four walls, but more importantly, what we're doing externally, and how we're building key partnerships to build an innovation ecosystem. Those partnerships consist of not only partners with our specific customers, but suppliers, universities, national labs, consortiums, and other large industrial companies. To execute our innovation ecosystem, we're focused in three areas, products, people and processes, and customers. As you can see from the slide, they're integral to each other. They go hand in hand. You truly cannot do one without the other, and they're all equally as important. Our goal here is to take our good ideas and get to that superior execution in making sure that we are truly measuring what matters most for our customers. I am a very big fan of the Barnes Enterprise System, which Patrick Dempsey was just referencing. It is a tried and true playbook that allows us to execute our business. More importantly, we need that on our innovation side, making sure that we have the right processes and procedures for our innovation ecosystem to get to that superior execution. More importantly, we cannot innovate in the dark. We need to make sure that with all of our new ideas, with all of our new technology, that we're getting that out there in our customers' hands where they can see it with their own eyes and touch it with their own hands and give us that feedback to get into that iterative loop. This allows us to continually develop solutions to enhance our customer experience. We are using a modular technology approach, which gives our customers not only the optionality, but the flexibility they need, not only in what they're doing today, but more importantly, of where they're heading in the future. More importantly, that also allows us to interact with our customers in a much more efficient way in the digital world. Internally, we have built up our core capabilities around these modules to execute our vision, to execute our mission, and we've also formed strategic partnerships with the external world to create this innovation ecosystem as well. We're focused in four key areas here, and number one is digitalization. Digital is a very big topic. It is near and dear to our heart, and we're very passionate about it. I could spend the rest of the day talking about it, but digitalization for us is not only about the new products that we wanna bring to market, it's more importantly about how we enhance our existing product portfolio. By integrating our product portfolio and including the digitalization, it allows us to get into advanced data analytics, Internet of Things, artificial intelligence, and machine learning. To be able to do that, you need to make sure that we have a common hardware and software platform that enables that digitalization, making sure that all of our products can specifically talk to each other, and then also including the advanced sensors which we're working on. This will unlock a whole host of opportunities for us around data analytics, more importantly, about how we interact with that customer, being able to notify them before problems actually happen. Stephen Moule will be talking in more detail about recurring revenue streams. Again, using the modular technology approach, a lot of opportunities here to be able to combine our products and truly add value for our customers. Continuing on, here are the key pillars that we're focused on to expand our innovation leadership specifically in the future. Number one is around smart, connected products, which we absolutely love. Again, our smart connected products are not about new products that we're bringing to the market. It's also about how we're enhancing our existing product portfolio. A smart connected product to us not only monitors what is going on in the process, it also gives us ideas of what's going around in the environment. Why not just stop there, right? We're able to take this and leverage this into pillar number two with our automation, robotics, and smart connected factory, truly killing two birds with one stone, and it's all around that digital transformation again and using advanced sensors. When we do this, we need to think about the long term, and sustainability is near and dear to our heart. Not only does it add value to our shareholders in terms of the new products that we're launching, but it does the right thing for the environment, and it's designed into all of our products for that mid and long term. Again, a win-win situation specifically across the board. Innovation in action. We have a lot of activities going on within Barnes Group, but there's two that I specifically wanna focus on, one in Molding Solutions and one in the automation group. Our automation in action for right now, I'll be talking about Molding Solutions, where we have a wonderful, or I should say we have a world-class technology portfolio, and by leveraging the collective brands within Barnes and converging and integrating our product portfolio, it allows us to be a one-stop shop specifically for our customers. The thing that we wanna get to here is smart or an intelligent molding, which enables environmentally friendly plastics. We have this broken up into three specific phases. I am a big fan specifically of our controls business, but what we wanna do is be able to take that and get it into the digital age, specifically in phase I. Phase II, specifically migrating to IoT, where we're getting into advanced sensors that enable our algorithms. In phase III, it's specifically around that predictive and prescriptive molding, truly getting into that smart, intelligent molding that enables the next class of materials for plastic injection molding. The world is gonna change in terms of how it uses plastics, and you cannot turn on a news station without seeing this. There's activism that's coming from consumers, but more importantly, there's also government regulations that are coming in across the world, and those are changing from North America, Europe to Asia. What that is telling us is that we need a robust platform to be able to process these new materials that are coming out, whether it is a percent recycled material or a biodegradable polymer that's specifically coming up. We're doing this in three basic phases. In number one, it's about our integrated offerings of combining our existing product portfolio, getting that to work together to get to that smart control, that smart injection molding process, if you will. In number two, we have proprietary processing capability with different polymers, different percent recycled material that we're using. For number three, it's about the predictive and prescriptive modeling, getting to that smart molding process, enabling a closed loop where our systems can automatically correct itself when we get out of line, when the system gets out of line. Also, talking about what we're doing in automation, and we have a very unique opportunity here of how we can marry specifically what we have in Molding Solutions with our automation, and that allows us to expand our product offering into numerous different areas. Not only creating the plastic part, but having the capability to be able to assemble it with our end-of-arm tooling, more importantly, making sure that we're continuing to leverage our portfolio synergies across the board with our smart controls, vision systems, and again, handling systems. Great opportunity for us to move forward to not only gain market share, but to expand into new markets. In summation, here are the key takeaways. Number one is that we have created an innovation ecosystem where we're leveraging digital technologies for that sustainable organic growth. Number two, we're using a modular technology approach, again, that gives our customers the optionality and flexibility that they need, not only for what they're doing today, but where they're going in the future. Number three, gave some specific examples of projects that we're working on. More importantly, it should be clear of how we're leveraging our portfolio symmetries across all of Barnes Group to get into new markets. At the end of the day, it's always about persistent ingenuity, making sure that we are truly pushing the boundaries of what is possible. With that, I will now hand it off to Lukas Hovorka, our Senior Vice President, Corporate Development. Thank you. Good morning. My name is Lukas Hovorka, Senior Vice President of Corporate Development. In my section, I'll share an update on our M&A framework, including our key acquisition criteria, and also discuss two of our strategic priorities, the continued expansion of our Molding Solutions business and the build-out of technology platform in the automation market. Four key messages I'll highlight in my presentation. M&A activities as an extension of our organic investments, complementing and helping to accelerate our organic initiatives, both areas focusing on technology-driven investments in attractive growth-oriented markets, both areas sharing a common vision of driving continued growth, transforming our organization, and building a technology-driven high-performance portfolio. M&A framework. Our key acquisition criteria have not changed all that much over the last several years. We've made certain tweaks and modifications to reflect our ongoing evolution of our corporate strategy, but it's by and large the same five core pillars guiding our M&A activities. Number one, intellectual property and barriers to entry. This continues to be the bedrock of our strategy. We continue to look for targets with advanced, sophisticated technologies, with identifiable barriers to entry, driving strong and defensible competitive positions. We're looking for those advanced, sophisticated technologies in attractive markets that have significant scale and growth profile, but also markets that align with key macro trends, whether it's aging population, product safety, or sustainability. We prefer markets that benefit from those macro tailwinds. Tying into number three, scalability, we also target markets with the right structure or the right level of fragmentation, creating potential for consolidation and building meaningful technology platforms within Barnes. Number four, leadership position. We're seeking targets with demonstrated leadership, either in terms of market share leadership or technology leadership. We believe that leadership positions create a much more favorable starting point on which we can build and expand. Finally, our financial criteria. We are looking for above GDP growth. We're looking for robust margin profiles. Really behind all of that, we're looking for a linkage to that first filter, intellectual property and barriers to entry. We're looking for evidence that the acquisition target has something truly unique and proprietary, something that customers are willing to pay for. To discuss our two strategic priorities, automation and Molding Solutions, two areas where we believe we have the most significant opportunity to drive growth and build scale. These are two very different areas, different in terms of technologies and market drivers, but areas that share common vision centered around the concept of integrated technology portfolios that include multiple discrete technologies, but technologies that can be combined in complete turnkey solutions in some of the most attractive growth markets, helping us drive synergies across the entire organization and promote sustainability. We have a number of exciting examples of sustainable solutions in our portfolio. On the automation side, could be anything from energy-efficient sensors, grippers, or electrically actuated mechatronic handling solutions. Within Molding Solutions business, the best example is our ability to process environmentally friendly materials that Pat talked about a few minutes ago. Let's discuss these two areas in more detail. We have identified automation as the most significant growth area for Barnes. It's a very large addressable market, but one with multiple technology verticals inside them, creating a very rich universe of potential acquisition targets, but also multiple technology verticals that are still very much fragmented, creating that opportunity for consolidation and building of meaningful technology platforms. It's also a market with some of the most attractive growth characteristics, market that's aligned with some of the key macro trends, having that macro trend alignment I talked about. It is an automation market that offers solutions directly addressing labor shortages, enabling remote operation of manufacturing plants, driving productivity, efficiency, and offering solutions in critical areas such as quality assurance or product safety. What is our approach to building an integrated technology platform? Well, first off, we define automation in terms of four discrete technology areas, robotic tooling, vision sensing, motion control, and system automation. Four technology areas with an estimated combined TAM of $12 billion. We're looking for those critical enabling automation technologies, but with deep applications expertise, technologies that can be integrated into complete product service packages with applications across a wide range of machine ecosystems. From more traditional pick-and-place applications to more advanced handling solutions in areas like packaging or pharmaceutical, all the way to advanced positioning systems in life sciences or semiconductor markets. We couldn't be more excited about the opportunity we have in automation. We have been very deliberate in identifying the right strategic target areas. We seek acquisitions across multiple technology verticals, and we have built significant momentum in our M&A activities. It's the Barnes brand name, our culture, our core values, the key elements of our enterprise system, and our track record in building new technology platforms, including our molding, Molding Solutions business, that continue to resonate with business owners, making us the partner of choice for a wide range of automation companies in this market. Molding Solutions is our second priority area. It's more advanced within the Barnes organization, where we have tremendous portfolio of truly differentiated technologies, a portfolio that gives us multiple opportunities for future growth. I'm gonna discuss three examples. Number one, customized system solutions. A very exciting area because it truly plays into all of our strength. It's an opportunity to sell our entire portfolio of technologies, from hot runners, high cavitation molds, sensors, process controllers, all the way to complete automation systems for injection molding applications. Number two, it's an opportunity to sell our deep application expertise across multiple end markets. Finally, it's an opportunity to leverage our leadership in processing bio-based, biodegradable, and recycled materials and make significant contribution to plastic sustainability. Number two, expanding in the medical and pharmaceutical markets. Two priority markets for our Molding Solutions business. Here, we already partner with the majority of key healthcare customers globally. It's also an area where we already offer critical solutions in some of the most attractive applications, from drug delivery, diagnostics and testing, lab consumables, diabetes care, surgical devices, and a whole host of other medical devices. With that, having a tremendous opportunity through continued organic and inorganic investment to drive continued growth and turn healthcare into the leading market for Molding Solutions. Then finally, global presence. Our Molding Solutions business already is a global player, but we have some exciting opportunities to expand, strengthen our manufacturing footprint globally, expand our sales and service presence, and become the go-to partner for even a broader range of key healthcare OEMs. To execute on our two strategic priorities, we are relying on our disciplined M&A approach. We have a proven M&A playbook for building new technology platforms, leading with initial anchor investments to establish presence in new markets, and then systematically building on that initial investment through bolt-on acquisitions. This is exactly the playbook we used to build our Molding Solutions business. In that effort, Synventive was that anchor investment, and each subsequent acquisition, Männer, FOBOHA, Thermoplay, Priamus, and others, they each added a very specific incremental asset or capability. Incremental in terms of new technologies and market expertise or geographic presence. It's the same playbook we're using to build our automation platform, leveraging the initial investment in Gimatic to build a sizable automation platform by the middle of this decade. To summarize, we do have a set of well-defined acquisition criteria that we deploy consistently in all of our organic and inorganic initiatives. We discussed our two strategic priorities, automation and Molding Solutions, two areas with really exciting opportunity to build integrated technology portfolios in attractive high-growth markets, with the medical and pharmaceutical markets being the priorities for our Molding Solutions business. Then finally, we are leveraging our proven M&A playbook to execute on those priorities, drive continued growth, transform our organization, and build a high-performance technology portfolio at Barnes. With that, I would like to introduce Dawn Edwards, our Senior Vice President of Human Resources. Good morning. My name is Dawn Edwards, and I'm the Senior Vice President of Human Resources at Barnes. I'm excited today to talk to you about how we're leveraging our talent management system to drive a high-performance organization. The key messages I'd like to cover today are about our one team, one company culture, how we're creating value through our talent management system, how we're taking it to the next level through digitalization, and lastly, spotlight a new and innovative way we are adding talent to the organization through Barnes Works. As Patrick mentioned in his opening presentation, our values are the bedrock of the company. Everything we do starts with our people and our values. It's not just what we do, it's how we do it. It's how we work together to drive growth. It's how we're tapping into the diverse experiences, expertise, ideas to innovate. It's how we're empowering our people to perform at their best every day. It's how we're working together to drive long-term results and success. We do it together, one team, one company, one Barnes. As was mentioned earlier, we drive performance excellence through our Barnes Enterprise System. Not just commercial, operational, and financial excellence, but talent management excellence as well. It starts with us providing robust processes, tools, and programs to support our employees, ensuring that they are effectively used by our employees, our managers, and our leaders to generate the outcomes that we desire, all with a view of achieving our organizational objectives and truly positioning Barnes as a top employer of choice in the marketplace. It's not just what we're doing to drive talent management excellence at Barnes, but how we're doing it. We manage our human capital at Barnes through our talent management system. Grounded in our core values, our talent management system is a strategic enabler under our Barnes Enterprise System and aligned with our purpose, our vision, and our strategy. It's facilitated by scalable and repeatable processes and measured and monitored for the outcomes that we desire. It also promotes employee empowerment and engagement, ensuring that we're supporting the growth, development, and advancement of our people. Lastly, it's helping us accelerate organizational change and effectiveness to drive business growth and performance for the long term. At Barnes, talent management is all about hiring the right talent with the right skills for the right positions at the right time, cost, and place. We're not stopping there with our talent management system. We're evolving it and taking it to the next level through digitalization. Our new digital approach is allowing for us to move away from disparate and segregated systems to a cloud-based, fully integrated solution that we're continuing to augment through advanced technologies. It's also allowing us to focus on continuous improvement, ensuring that we can deliver HR services easier and faster around the globe. It's allowing us to customize our talent offerings to appeal to the diverse and evolving needs of our workforce. Lastly, this new digital approach is giving us access to data to focus on what matters. Descriptive analytics to provide hindsight to explain, but more importantly, predictive analytics that is providing us the opportunity to forecast and plan, and eventually prescriptive analytics, which provides us foresight to simulate the outcomes we desire. Powered by technology and data, digital is allowing us to future-proof our talent management system, positioning it as a true strategic enabler under our Barnes Enterprise System and helping us drive organizational performance and agility. Through our digitalization efforts, we are now able to provide the full picture of talent management at Barnes. We are able to leverage data to make informed decisions. We are transitioning from a belief-based system where I think or I feel to a data-based system where I know. This is allowing us to identify opportunities and prioritizing investments to drive better talent management and DE&I outcomes. It's also allowing us to optimize and automate our processes, making them accessible from anywhere, any device, at any time. It's also providing a single solution for our employees to facilitate onboarding to offboarding while continuing to improve our user engagement and drive performance and productivity. Our digitalization efforts are allowing us to improve talent management decisions and deliver an enhanced employee experience at Barnes. Now I'd like to spotlight how we are leveraging our talent management system to create a new and innovative way to work at Barnes. Barnes Works is a community of freelance-like talent. These individuals are hired for fixed periods of time with in-demand specialized skills and capabilities. They are deployed anywhere, anytime to work on key initiatives and projects that are supporting our digitalization efforts, innovation, R&D, or other special projects that support the ongoing transformation of the company. It also provides us the ability to onboard and offboard based on the skills and capabilities we need in an efficient and cost-effective way. In human resources, we've been on a digital journey that required a different skill set to help us build out our infrastructure. We have hired a Barnes Works employee to help us do just that. They will be working with us for the next 18-24 months as we continue to refine our infrastructure. From there, they have the potential to go on another assignment within the organization. This will allow us to be able to hire a data scientist that will help us refine and mature our dashboards. As you can see, by using Barnes Works, it's providing an innovative way to attract new and specialized skills to accelerate our ongoing transformation. The key takeaways include our one team, one company culture, and how we work together, how talent management is creating real value for the organization, how we're evolving it and taking it to the next level through our digitalization efforts, making sure we provide the full picture of talent management to the organization. Lastly, how we're introducing and bringing new talent into the organization through Barnes Works. Thank you for your time today. I'll now turn it over to Bill Pitts for our Q&A session. You may submit a question at any time using the Q&A functionality within the web platform, and we have received a few questions already. To start off, Patrick, a question from one of our long-term shareholders. Can you provide us with your rationale for rebranding the company? What were the factors that led you to undertake this initiative, and what do you expect to gain from it as we move forward? Again, thank you everyone for joining us this morning. It's with great excitement that we're here to speak about the great things happening at Barnes. Relative to the rebrand or the new Barnes brand that we've just recently launched, we felt that as the transformation of the company has been taking place over the last few years, that the brand didn't necessarily keep pace with the amount of energy and passion that had been built up in the company. With that, we launched our new brand as a means to exemplify the passion and energy of our employees where it is we want to take the company. It's a forward-looking approach with a emphasis on, you know, creating what's possible, looking towards the future. With that, we, you know, as I mentioned, we took the opportunity to take a step back, create a new purpose statement for the organization, and encapsulate what it is the company stands for. With that, the new brand, I think, which is contemporary, fresh, energetic, you know, exemplifies everything that's going on at the company and the energy and passion in which we're driving it forward. Great. We're receiving a number of questions related to M&A, so let's tackle a couple of those right now. Our first question comes from Michael Ciarmoli of Truist. Can you provide more context on the M&A strategy in terms of potential size of deals, the multiples you are willing to pay and the leverage you're willing to take on? All of these technologies you are targeting would seemingly fetch a 15x or greater multiple in the marketplace, yet Barnes is trading at a discount to that multiple. How do you ultimately think about value creation? Maybe I'd ask Lukas to start off and then Patrick to fill in after. Sure. In our two strategic priority areas, we're pursuing a range of acquisitions. Historically, we've been quite successful with acquisitions in the $200 million-$400 million range, and we see a number of opportunities in those areas. With that said, for the right target, for the right strategic target, we can certainly go above or below that range, but that has historically been our sweet spot. In terms of valuations, they have been a factor for sure. We have seen elevated levels across multiple markets. With that said, I would say they're not uniform. They still are situational. They're driven by a number of different factors. Private negotiated transactions versus formal auction processes, public targets, private equity targets, or private targets. A lot of different factors, as well as a lot of target-specific factors, growth potential, margin performance, required investments to deliver that performance. The last thing I would mention is also this environment. One thing it does, it drives greater transaction discipline, puts greater emphasis on pursuing the right strategic targets and, prioritizing those that drive synergies, that allow us to leverage some of the core elements of our enterprise system and again, drive synergies across portfolio. Look for those, the right favorable deal economics. Great. I'd just add to that. I think that Molding Solutions is a clear example of where we acquired a number of different businesses individually. What they represent in terms of our long-term strategy is the power of bringing them together to offer a complete bundle package of and integrate the system to where we're looking not only to leverage the technology that we've acquired but to create value through leveraging that technology to the next level. As we look at our acquisitions, as Lukas said, we remain very disciplined in our approach. While, yes, valuations are elevated at the moment, we continue to look at how Barnes can extract value and create even further value moving forward through synergies and through taking the technology to the next level. I might offer that, you know, that is at the heart of why we launched our innovation hub. As Pat mentioned, it's with a view to not only taking the businesses as we find them, but with a vision to what's possible and where to take it next. Good. Sticking to the M&A questions, as there are more of those, right now. Lukas, a question from Lou Raffetto from UBS. What has the M&A environment looked like over the last 18-24 months? Are deal opportunities higher or lower? And your view on the valuations of those opportunities. We have certainly seen a disruption in M&A activities in the first half of 2020 due to the COVID pandemic. Starting in the second half of 2020 and throughout 2021, we have been able to rebuild our momentum in M&A activities. Again, we're focused primarily on privately held businesses, and there we have been very pleased with the progress made and the momentum we've built across those two areas. We're in a good place. I would offer that the Barnes story, what we offer continues to resonate with business owners. It's our track record in building new technology platforms, our core values, what the brand name stands for, the key elements of our enterprise systems, all those are assets in our M&A activities, and we continue to be the partner of choice for a wide range of companies. Great. I might just add that, you know, while Lukas highlighted for 2020, we saw somewhat of a hiatus on M&A from a Barnes perspective. What that afforded us was the opportunity to look inward in terms of organic growth. We made some significant bold investments over the course of the pandemic with a view to expanding on the capability sets of the acquisitions we've made. We again, this is another example of where we're looking to create value. Even after, you know, we acquire a business, not only with the implementation of the Barnes Enterprise System but expanding the capabilities. One example might be with Gimatic, we just recently launched a complete new vacuum line, and that I think is something that Stephen Moule will speak a little bit more to. It's an example of where we're while we're potentially being very deliberate in our selection process right now as it pertains to acquisitions. We're not sitting on our hands, so to speak, but driving organic growth in the meantime through a range of different new product capabilities. Great. One more tuck-in question that's kind of related to what Patrick was talking about. Lukas, in terms of M&A, the company has not completed a significant acquisition since Gimatic. Why has that been the case, and what should be expected over the next few years? That's coming from Garo Norian of Palisade Capital. Yes. As I mentioned, our primary focus is on privately held businesses. In that sense, we don't control timing, and it's difficult to predict the actual timing of acquisitions. With that said, again, very pleased with our progress, the build-out of our funnels across those two strategic priorities. Again, the Barnes story resonates. It's a big asset in our acquisitions, and we're very confident that we can execute on our goal of building a sizable automation platform by the middle of this decade, and equally continue to build our Molding Solutions platform. Couldn't be more excited about the assets we have in that portfolio. We're now in a position we can truly integrate and go after those system solutions with our Molding Solutions business and continue to drive progress in some of the most attractive markets for that business. Great. Now moving to a question on digitalization from Pete Skibitski of Alembic. Digitalization was a key aspect of the presentation so far. Can you provide a concrete example of how digitalization can drive growth for the firm? Let's start that off with Pat. Absolutely. Again, digitalization is a very big topic, and it's not only about new products that we're bringing to the market, but it's also about enhancing our existing product portfolio. With that, when we start to look at smart connected products, it's absolutely key for us. Again, I'd go back to our Molding Solutions and our automation division, where we have wonderful product portfolio, and by leveraging the collective power of their brands, it allows us to do some pretty interesting things. Again, by integrating our solutions or integrating our products where they can interact and work with each other as a team, it allows us to be able to get into that smart molding or that intelligent molding. That's how I specifically sit back and look at that digitalization from, you know, a technology standpoint, getting it into smart connected products, again, leveraging our technology portfolio and translating that into smart connected factories. Just building on that, I would highlight that, as Pat mentioned, our focus on digitalization is, one, in terms of enhancing the customer experience, and second, in terms of driving efficiency and productivity within our own operations. So as we think about our own operations, we're thinking about smart connected factories. As we're thinking about the customer, we're thinking about the ease of doing business with us in terms of whether that's through our digital systems, our digital portals, whether it's through our self-service design configurators, whether it's through how any interaction with Barnes takes place, and in terms of driving added value for the customer. Great. The next question comes for you, Dawn. Mm-hmm. Again, from Garo. With human resources, can you share some of the key performance indicators you monitor, and how are they trending in this difficult labor market? Similar to other companies, there has been, you know, some labor pressures, not only as it relates to the pandemic and the resulting effects of that, but also in terms of, you know, what we're seeing both domestically and internationally. That has affected some of our segments. With regard to the HR metrics, we are looking at in terms of our applicant tracking, our applicant pool, individuals who are applying for our open positions, as well as in terms of how we can convert those to permanent hires. We're leveraging the talent management system in a variety of different ways to make sure that we're attracting, engaging, and retaining the talent. We're looking at our applicant pool, conversion, how we're looking at, the retention aspects as well in terms of our attrition rates. We're developing programs, processes, as well as leveraging our tools to enhance those, making sure that we're continuing having individuals coming into the organization and converting them to new hires. Great. Jumping back to M&A, another question from Christopher Glynn. Some great success with the acquisitions noted, but what is an example of a deal that presented slower going or unique challenges in extracting the value, and what are the key learnings of that for the future? That's a good question. You know, probably some of the more advanced technology-driven acquisitions that on the one hand, you know, move us forward in terms of integrating the technologies we have in our portfolio, create that complete solutions for market customers, create a great opportunity. Those are perhaps a little bit slower to get good implemented and truly executed across the portfolio because those opportunities really require coordination, integration across the entire portfolio. Maybe a little bit more challenging, maybe more extended timelines. With that said, that's exactly the direction we're taking and sort of the playbook we're trying to replicate on the automation side, kind of looking for complete portfolios so we can create complete solutions, integrated solutions, driving synergies across the whole organization. Bill, what I might add to that is I think what our experience has been is that as we looked at heavily engineering-based businesses, what Barnes historically has been very good at through the Enterprise System is integrating businesses operationally and maybe less so from an engineering perspective. I think that was at the heart of the reason why we recognized that we needed that engineering expertise through Pat and his team and the innovation hub, so that they play an integral part going forward now in the integration of the engineering systems and the best practices that Pat has created with his team, so that we flow those out equally, so that we accelerate forward the integration of the technical aspect of the business as much as we do the operational aspect. Great. The interest still seems to be highly focused on the M&A activity. Patrick, a question for you that's more of a higher level strategy question. This one comes from Matt Summerville of D.A. Davidson, although others are asking similar questions. In the context of where you want to strategically take the company, would you consider monetizing any current assets as a means to accelerate that? And do you therefore still view aerospace as core? What I would point towards is, you know, the transformational journey that we have been on. As we embarked upon it, you know, back in 2012, the very first move we made was to enter back into the acquisition, you know, on our acquisition journey. With that, in order to monetize what we saw as our go-forward strategy, we made a very conscious decision to divest of our distribution businesses in North America and Europe. As we move forward, I would highlight that as we continue to execute the strategy, we're always going to continually evaluate the portfolio from a perspective of strategic options. Does that mean that we look at any one of our businesses in the future with a view to whether it still remained as core? The answer is yes. With a view to the fact that as we continue to evolve, as we continue to execute the strategy, I think that we're never going to be static. We're always going to look to evaluate the portfolio and what makes sense. You know, even more recently, I would highlight that we divested of our Seeger-Orbis business, which again is evident to the fact that there's, you know, a continual process of evaluation that's going on. Today, I would say our aerospace business is strategic to us in that it continues to be a high growth business. It obviously has hit a very tough spot with the pandemic. As we look out, and as you'll hear from Mike Beck later on this morning, you know, we're excited about what the future holds for aerospace and the growth trajectory that's ahead of it, both in terms of new make OEM and aftermarket. Great. Sort of a tuck-in question on this subject. What is your appetite for transformative transaction versus tuck-in M&A? Yeah. It's a great question, and we evaluate it. When we evaluate our M&A activities, and then I'll let Lukas add anything he likes, you know, we're looking at it in two streams, if you like, or along two lines of thinking. One is the tuck-in or the bolt-ons as we executed with Molding Solutions, and Lukas detailed that, I think very nicely. The other area we look at is transformative. A transformative deal, if it meets the right strategic criteria, aligns with our go-forward strategy, we absolutely would evaluate it. Great. Pat, a question coming in for you. How is Molding Solutions preparing for the increasingly challenging regulatory environment related to single-use plastics and recyclable materials? You know, how is this impacting some of our markets like packaging, and what are the risks and opportunities that you see? Absolutely. Great question. You know, when we take a step back, we look at Molding Solutions, leveraging the collective power of those brands. Again, don't mean to sound like a broken record here, it's key. We have a wonderful product portfolio. Again, by sitting back and just taking our modular technology approach where we're able to focus on hardware and software, which really allows our products to be able to connect and talk with each other, more importantly, continue our advanced work on sensors and the digitalization. By doing this, it allows us to truly get into that smart molding. Again, when we look at how the world is going to change in terms of plastics, it's key, right? Government regulations are coming in, social activism. To be able to run these new materials, you need to have tighter and tighter controls, and that's what our portfolio is built to do. Again, just by leveraging the power, the synergies that we have across our portfolios, it enables to get to that point. More importantly, as we start to move out in the future, you can only imagine what biodegradable polymers are gonna hold for us in 10, 15, 20 years down the road. We need to start today to be able to get our products talking together and more importantly, getting into that smart molding. We got a great portfolio to be able to do that. I feel comfortable with where we truly are. More importantly, when we start talking about PCR is the materials are there, percent recycled materials are there. The issue that you have is the batch to batch variability, and our controls allow us to manipulate that. Yeah. Bill, what I might add to Pat's comment is the fact that what we've recognized too is that we have a core set of technologies that can be a part of this solution. The part of the solution to plastic waste, and what Pat and his team have focused on more recently, is the fact that we need to think about our innovation in the context of an ecosystem, not something that's gonna happen in isolation within our four walls. As Pat highlighted, we've continued to build alliances and relationships with other partners that we believe collectively by working together, we can bring our core technology to be a part of the bigger solution. I think that's really where there's great opportunity as we move forward. Excellent. Then, Patrick, a question from Pete Skibitski. It's more of an end market question, and it's gonna set up what Steve Moule will talk to us about in a little bit. What's the right way to think about your outlook for medical market growth and your strategy for growing with or outperforming that market? Yeah. The medical market is a key area of focus that Steve will speak to shortly. As we think about it, what we recognize is that we have a unique set of capabilities within our Molding Solutions business. As we've opened up our eyes to this market, we've realized that we have offerings across the entire portfolio that can be directed to the medical market, and that maybe we haven't put the emphasis on that even across the other businesses. The primary area of focus today is within Molding Solutions. What we've recognized is that our technology is key to medical devices. Our technology is key to, you know, adjacent pieces of the medical market that we historically have not played in. We see those as opportunities to continue to grow within medical, whether that's IVD or in vitro diagnostics, whether it's into, you know, consumables within the medical market, all with a view to continuing to build on the technology that we have. I would highlight just as a case in point, we launched into an adjacent market just through the pandemic with the development of our pipette program. Again, Steve will speak a little more to that later on. As we look at our capability set, our growth objectives are in terms of not only developing new products and capabilities, but expanding into adjacent segments of medical, and third, expanding geographically. Great. Lukas, another question for you comes from Chris Glynn. In terms of following your playbook in building out automation with acquisitions, what is the anticipated timeframe to complete this build-out? How fast can you grow the automation SBU? And are multiples prices of acquisition candidates prohibitive? Are your targets privately held or public companies? Yeah. I'll start by saying that our near-term goal is to have a meaningful automation platform, meaningful in the context of the Barnes organization by the middle of the decade. Of course, we will not stop there. We see this as a long-term opportunity. We truly see automation as the most significant opportunity to drive growth, transform our portfolio, and create a high-performance technology portfolio. Biggest potential, it will not stop by middle of this decade, but that's our immediate goal, having something meaningful in the context of Barnes organization. Very confident we can get there, very confident in terms of the continued build-out of our funnels. As I explained, we right now target those four core verticals, robotic tooling, vision sensing, motion control, and such, but we continue to expand those. We give ourselves a lot of opportunity to expand, targeting a whole universe of potential targets. Those tend to be mostly private held targets, so developing relationship with a lot of individuals, a lot of families. Back to valuation. It's absolutely a factor, you know, across many areas, including automation. We have seen valuations at historically high levels. But again, it's not uniform. There's a lot of situation-specific factors that drive those, and it's back to discipline. It's discipline to, you know, being very focused, very selective, going after strategic targets that allow us to leverage the key tool, our playbook, and the core elements are BES, making sure the deal economics are still favorable. Great. Pat, another question for you on innovation. Regarding the four key technology platforms that you talked about, materials, software, hardware, and sensors, can you provide some additional color on those items? Absolutely. When we get to this, it's all about that digital journey and getting into new products. For our existing products to talk to each other, the hardware and software platforms are absolutely key, making sure that we have common hardware throughout, but more importantly, that we're using the same languages. When our customers come to us, and they wanna order three or four products or an integrated solutions, that our components work together specifically as a team. That allows us right there to be able to get into that digitalization, unlocking the full value of data analytics, which gets us into IoT, artificial intelligence, and machine learning. Again, always making sure that we're continuing our advancement specifically with sensors to marry into that as well. That's great. Patrick, given inflation, can you provide us with an update on your ability to pass on pricing and your pricing strategy going forward? Certainly a hot topic of interest in today's market. Sure. Well, as we've highlighted in each of our earnings calls, inflation has been at the center of attention for us as a collective team. Needless to say that the current environment and the disruptions to the supply chain have, you know, been part contributors. With respect to our businesses, you know, I'd highlight on the Industrial side, where the teams have done a really nice job of looking to pass through particularly raw material inflation. We're continuing to work the freight side of things, and that again has, you know, net we've experienced some significant headwinds over the course of the year. On the Aerospace side, we have been more successful where the contracts allow for flow-through of raw materials to, you know, to the customer. Not that we're totally immune in aerospace, but clearly, the majority of our contracts allow for material flow-through. All in, the teams have done a wonderful job. I think, we're going to continue to, you know, address this, and I think it's gonna be an area of ongoing, you know, concern into, the early part of the new year. The teams are up to the challenge, and I think they've done a really nice job up to this point, and we'll continue to make it a key focus area. Great. Dawn, a question coming in, for you. How many employees have been obtained through the Barnes Works? Who oversees their assignments and makes personnel choices? How big do you envision this initiative to become? Sure. Our Barnes Works program currently has about 10 individuals in the community. However, we just recently rolled it out, and it's primarily in the United States. We see this as an opportunity to continue to grow and leverage it in terms of creating another talent pipeline to bring these skills into the organization in addition to the traditional model. The hiring manager and HR work together to develop the, you know, based on business needs, what exactly is required in terms of those specialized skills or those differentiated skills. Then these individuals come into the community for that fixed period of time. I see this as being a great opportunity to support from an innovation perspective, a digitalization perspective, but also those other functional assignments, whether that's in finance, whether that's in HR, whether that's in health and safety. This is just giving us another tool with the war on talent to bring those skills into the organization when we need them. Great. Patrick, a question coming in for you. Do you have someone in mind to replace Mike Beck when he retires? When will his successor be named? Maybe perhaps Dawn, you could follow up with that with regard to succession planning. Mm-hmm. Relative to Mike's retirement, as I highlighted, you know, we're excited for Mike in this next chapter of his life. For us, we're working now closely on how, you know, to evaluate his successor. I will highlight that within Barnes, we're always going to look internally and externally for a successor. With that in mind, you know, even as you look at the senior leadership team, my senior leadership team today, we have six that have been promoted from within and four that have been recruited from outside. What we're looking for is the best possible talent that aligns with the vision and strategy that we're driving within aerospace. As we continue this process, our goal will be to, you know, identify a successor as quickly as possible and hope to do that in advance of Mike's departure, as I said, to ensure a smooth transition. Right. Just building on what Patrick has said, I mean, absolutely aligned with our talent management system in terms of how we do succession, not only in terms of the C-suite, but also further down in the organization, looking internally in terms of talent that we can groom from within and develop within, but also externally, all with the goal of bringing in the best talent to help us accelerate and drive our transformation. For those in the audience, as you look at the members of leadership on the stage, Patrick, Dawn, Lukas are all internal hires and internal promotions. Pat's the new guy on the team here. Moving now to another question for Lukas. In terms of tuck-in M&A, is there one particular product or capability that you would find really complementary to your portfolio? If so, what is that? It's difficult to answer. We have different stages of development, very different molding solutions and automation. If I had to pick one, it would be probably technology that connects to what Pat was talking about, digitizing our offerings, developing that complete technology solution. In that context, technology areas, including sensors, controllers, probably top of our list. Great. One more question maybe to round out the first Q&A session here. Patrick, this is a high-level strategy question. Your strategy is fairly consistent with that shared in 2017. Is it still the right strategy to accelerate growth and drive margin improvement? From our perspective, absolutely. What it is that the strategy, as I mentioned, is comprised of four pillars. One, to build a world-class company, two, to leverage the Barnes Enterprise System, three, to expand and protect our IP, and four, to create value for all our stakeholders. That strategy has remained somewhat steadfast. However, it provides flexibility, as you've heard from each member this morning, in terms of how we look at technology, how we look at intellectual property, how we look at new markets, new product capabilities. I think that, you know, we continue to drive forward with a passion around the core strategy. And at the same time, we continue to continually evaluate the portfolio in terms of additions and potential, you know, areas that we might feel in time are non-core. Great. At this point in time, we're gonna take a short break, and I'd suggest we'll start up again around 10:05 A.M., a couple minutes earlier than we had originally planned. Yeah. We'll see you then on the other side, and we'll begin that with Steve Moule from our industrial segment. Great. Thank you. Thank you. Thank you. Yeah. Good morning. My name is Steve Moule. I'm the president of Barnes Industrial, and I'm delighted to share with you today an overview of the industrial segment and the many exciting initiatives our team are driving as we continue to execute on our strategy of transforming our portfolio to drive above-market growth in attractive, high-margin end markets and regions. In the industrial segment, we have a targeted portfolio of highly engineered precision products and systems that solve our customers' most complex challenges in medical, automation, and electric vehicle end markets. We have a balanced market portfolio that enables us to be able to benefit from a number of favorable macro trends. Our team is focused on executing against our strategy, particularly focused around driving our sales and marketing expertise as we look to build deep customer relationships, as well as investing in our connected devices platforms, where we look to be able to provide our customers with real-time actionable data to enable them to make more informed decisions and build a software-based recurring revenue streams. We have a number of targeted organic and inorganic actions that we look to leverage our global presence and our in-market sales and technical support to be able to build relationships with our customers and drive sustained profitable growth. The Barnes Enterprise System is the foundation and the common language that we use across Barnes to run great businesses. BES is the glue and the foundation that enable us to be able to deploy and execute against our strategies. I've been with Barnes for two years and could not be more pleased to be a part of the team. We have an exciting team and a wonderful team around the world, and I'd like to just share a couple of key observations that have proven true over my last two years. First of all, we have an outstanding portfolio of premium brands and technologies. We have a passionate and experienced leadership team and a wonderful team around the world. Our enterprise system gives us a solid foundation and the standard tools that enable us to be able to deploy our strategies and execute and run great businesses. Of course, we have a number of areas of opportunity as well, and I'd probably like to highlight just two. First of all, continuing to build our enterprise system, particularly around our sales and marketing capabilities, so that we're able to build out a standard engine to drive sustainable growth. Secondly, across the world, we have a tremendous install base of hardware with our customers. We have the ability here to be able to connect that hardware, provide our customers with real-time actionable data to help them make more informed decisions and enable us to be able to build a sticky software-based recurring revenue stream. The Industrial segment, we go to market with four strategic business units, each business unit looking after customers across the world. Our competitive advantage comes from our breadth of products and solutions, our direct manufacturing and engineering expertise, and our in-market sales and technical support that enables us to provide our solutions and aftermarket support to our customers in the markets where they operate. Diving a little deeper into our business units, each of our businesses has a number of leading brands and premium technologies, and we look after our diverse and global customer base. Our teams build very deep relationships with our customers, and we leverage these relationships to enable us to bring to market products and solutions that meet our customers' needs in the markets where they operate. I'll dive a little deeper into each of our business units as we go through the presentation. Our industrial portfolio is aligned with a number of long-term macro drivers that enable us to be able to drive sustainable, profitable growth. I'd like to highlight just three of those. First of all, aging global population, increased access to healthcare, and the explosion of at-home testing represents a wonderful tailwind for our Molding Solutions business, and in fact, all of our business units that provide a number of applications and solutions across the medical industry. Automation demand is increasing. The employment market has changed dramatically over the last two years, with the demand for skilled labor exceeding supply. Our automation business, a market leader in robotic handling solutions, is well-positioned to be able to win from that demand for automation. We believe that it is our breadth of new products and our direct sales and service operations that will enable us to be successful. The final macro driver I would highlight is the electrification of vehicles and the continued investment by new and startup OEMs to continue to bring out new electric vehicle platforms. This represents a wonderful opportunity of growth for our FMC and our Synventive businesses. As an industrial segment, we continue to focus on the transformation of our portfolio through a number of organic and inorganic actions that enable us to focus on higher margin and less cyclical end markets of automation, medical, and mobility. We continue to invest in our connected devices strategy to be able to provide our customers with real-time actionable data and to build out a software-based recurring revenue stream. In terms of our performance, our revenues will be at the lower end of our October guidance, while our margins will be below our October guidance as we've continued to experience headwinds and inflationary pressure as we've continued to work through the quarter. Our business continues to invest in new technologies across automation and medical to make sure that we're bringing to market for our customers products and solutions that meet their needs in growing market space. In terms of our strategy, we continue to leverage the Barnes Enterprise System, and particularly our goal deployment process to enable us to execute. Our strategy comes across four pillars. First, be able to shift our portfolio to high margin recurring revenue streams in attractive markets of medical, automation, and mobility. Also, as I've already mentioned, building out our connected devices strategy to be able to provide our customers with greater actionable data and information. Second, build out our strategic marketing and sales force initiative capabilities within our enterprise system. What we really mean here is building out a number of tools that enable us to drive a standard approach to growth, particularly focused around how we think about product management, supporting our sales organizations and engineering. Our third initiative is to look to continue to attract and develop the best talent, really bringing in skill sets and using our talent management system to bring the best skill sets in to help us continue to execute on our strategy. Here, we're particularly thinking about software sales, systems engineering, and software development. In our fourth pillar, we're looking at our digital transformation, thinking about enhancing the customer experience, improving our digital lead generation, building out our connected devices strategy, and then working on smart factory investments. Turning to our automation business, Gimatic, headquartered in Italy, is the only business that we currently have within our automation business unit. As you heard earlier, we are very much committed to continue to build out this business unit through both organic and inorganic means. Gimatic is a market leader in providing gripping solutions and vacuum cups, primarily handling lightweight plastic parts in the automotive, medical, pharma, food, and beverage industries. Gimatic, at its core, is a technology company renowned for its engineering expertise, broad range of products, speed of new product introduction. Gimatic has had a very strong year on the back of robust demand for its core product lines and also new product introduction. We've continued to invest in direct markets and believe that it is our breadth of products, our speed of new product introduction, and our commitment to direct sales and service where our customers operate that enable us to continue to drive sustainable, profitable growth. The automation marketplace continues to be very resilient as customers are looking for solutions to provide them with greater flexibility and also improve productivity and throughput. We believe our Gimatic business is well-positioned to win off these trends, and I'd just like to highlight a number of those today. First of all, we go to market with 16 direct automation centers in the major automation markets of the world, where we provide our customers with in-market sales and technical support. We have a broad range of products, from gripping solutions to end-of-arm tooling to vacuum cups. All of our products are compatible with most major industrial robots, and we continue to see really good growth and demand from our end markets of automotive, food and beverage, medical, and pharma. Gimatic goes to market with direct sales and service, also complemented with an extensive number of distribution partners that look after our customers in any markets that they operate. We have a broad range of products of gripping and end-of-arm tooling solutions. Earlier this year, we launched an entire vacuum range, over 1,000 lines that enable us to access new markets and new customers, primarily in the food and beverage industry. In addition, the team identified an opportunity to sell sensors to our customers to enable them to keep track of their end-of-arm tooling and molds with a simple application on their phone. The automation team leveraged the Barnes Enterprise System to be able to deploy and execute on their strategy. Their strategy is really on four pillars. First pillar is expand in China. China represents the fastest growing and largest automation market in the world, and we continue to invest in our direct sales and service presence as well as our product lines to make sure that we're able to drive profitable growth in that market. Second, be able to drive growth in pharma and medical end markets. We continue to see very strong demand in those end markets, and our products are well-positioned to drive growth. Third, as I mentioned earlier, continue to capitalize on our leading position in vacuum as we launched a brand-new range of vacuum cups earlier in the year. We believe this sets us up well to access what we believe is a significantly large market and access growth across the food and beverage industry. Finally, grow global key accounts. Here, we're looking at continuing to invest in our key accounts and sign frame agreements with large companies that continue to automate and then be able to leverage those frame agreements in the local markets where we serve our customers. I'd now like to spend some time sharing two customer examples with you that really highlight how the Gimatic team are able to innovate and work with our customers to bring great solutions to market. The first one is with customer Denso. With Denso, we worked to be able to produce a range of gripping solutions for cleanroom applications. We were able to commercialize these grippers, and they now form a standard part of our medical and pharma range, enable us to be able to drive growth in this market segment. The second example comes from our recently released vacuum cup range. Here, the team worked with a large European food manufacturer to be able to design and bring to market a customized lightweight vacuum cup solution that enabled the customer to better handle their food packaging. Not only was the customer able to better handle and through better throughput, but they were able to get energy savings, improved uptime, and lower maintenance costs. In addition, the customer can access our breadth of gripping solutions, end-of-arm tooling, and in-market technical support. I'd now like to turn to our Molding Solutions business headquartered in Germany. Molding Solutions is our largest strategic business unit and provides premium technologies to the plastic injection molding industry. Molding Solutions operates in a number of very attractive end markets: medical, personal care, packaging, and automotive. The business goes to market with six leading brands with a breadth of solutions from molds, hot runners, temperature controllers, sensors, and electronics. The team have continued to invest in their connected devices strategy, pulling our products together to be able to provide our customers with real-time actionable data and information and to be able to build out software-based recurring revenue streams. Our competitive advantage comes from the breadth of our solutions, our engineering expertise, our in-market manufacturing, and our direct sales and service that enables us to be able to provide our solutions and aftermarket support to our customers in the markets where they operate. Molding Solutions operates in a large market, and our products and solutions form an important part for our customers to enable them to be able to produce their parts at high volumes, in repeatable high quality with minimizing waste. Our customers view Molding Solutions and our value proposition ties to a one-stop-shop, where customers can come, access our technologies and solutions, adapt them to their own applications, and be looked after by our products and our in-market sales and service and support. I'd like to now just spend a minute on the medical market, which continues to be very strong and resilient and a wonderful growth opportunity for Molding Solutions. Our medical customers demand the highest quality at the lowest lead times, and this provides a great platform for us to be able to drive growth given the breadth of our products and solutions and our in-market sales and support. Our wonderful team of engineers and toolmakers work very closely with our customers to devise very, very complex solutions to our customers' most challenging demands. I'll share a bit later an example of where the team worked very closely with a large European medical device manufacturer to be able to produce molds and hot runners to enable the customer to manufacture very complex pipette tips in low lead times. This opened up for us not only a win with that customer, but also access into a fast-growing IVD end market. Molding Solutions. The Molding Solutions team leveraged the Barnes Enterprise System to execute their strategy. Their strategy is across four pillars. First one is to accelerate growth in medical and pharma. The medical and pharma market represents very strong growth for us and resilient and a wonderful opportunity for us to be able to drive growth and leverage our broad portfolio of technologies and solutions. The second pillar to our strategy is to really expand it and entrench ourselves in the United States and Asia. Both these markets we see as being very attractive, high growth, high margin, and we believe are well-positioned to win with our breadth of solutions and our in-market manufacturing, sales, and aftermarket support. Our third pillar of our strategy is to focus on leveraging our integrated portfolio to sell our systems and also getting connected. Here, we're really talking about two different initiatives. One, bringing our products together so that we're selling a full bundle. Our customers are able to access a full bundle of our solutions to really improve their business. Second one is focused on getting connected. Being able to connect our devices and provide our customers with that real-time actionable data to help them make more informed decisions and enable us to build a stickier software-based recurring revenue. Our fourth pillar is really focusing on our Synventive business, making sure that that business is well-positioned to be able to win the investment that we see in new electric vehicle models and platforms. I'd now like to share two examples of where the Molding Solutions team have been able to bring to market their incredible engineering expertise to be able to solve customers' problems. The first one is the one I mentioned, referenced earlier, where the team worked with a large European medical OEM to be able to bring to market very, very complex pipette tips in a very short lead time. This opened up a tremendous opportunity for us, not just with this customer, but also with that broader, fast-growing IVD market. The team invested in engineering and manufacturing capacity to be able to bring this product to market. Our next example is from our personal care and packaging, where the team worked with Procter & Gamble to bring to market a very complex mold where we're able to inject a digital watermark into plastic bottle caps, so that when the bottle caps come back for recycling, that digital watermark can be read by an automated vision system and then correctly recycled through the sorting process. I'd like to now move to our Force & Motion Control business that's headquartered in Sweden. Force & Motion Control goes to market in two end markets, the tool and die, which is focused on sheet metal forming applications, and general industrial, where we bring to market industrial custom springs, industrial gas springs, and industrial shock absorbers. In the tool and die market, our sheet metal forming brands are KALLER and Hyson, and we're market leaders in nitrogen gas springs. In general industrial, we go to market through the ARaymond and IGS brands. Our Force & Motion Control business has a direct sales and service presence throughout the world, as well as an extensive number of distribution partners that enable us to look after our customers in whichever markets that they operate. Our Force & Motion Control business operates in the automotive, heavy-duty truck, medical, and general industrial end markets. The team has seen a nice recovery this year off the back of continuing to execute on their growth strategy. In Force & Motion Control, we see some really nice market tailwinds to enable us to drive growth, particularly the increase in investment in new electric vehicle platforms, general economic recovery, and infrastructure spend in the United States. In our sheet metal forming business, our engineering expertise is core to our Hyson and KALLER brands. Our engineers work very closely with our customers and all the stakeholders through the value chain to ensure that we're able to bring our complex products and applications to meet our customers' most challenging demands. In the sheet metal forming, the automotive industry continues to be extremely important, and we see a wonderful growth opportunity with the new proliferation and increase of electric vehicle models. We've also identified a great opportunity in industrial, where we see the opportunity to be able to switch out existing hydraulic systems with our heavy-duty gas springs, thereby opening up new end markets and new customers and being able to enable us to drive sustainable, profitable growth. Our FMC business is really well positioned to win, and I'd probably just highlight three areas. First of all, new electric models. The increased investment in new electric models by both existing and new OEMs, as well as government investment in infrastructure, represents a wonderful opportunity for this business to be able to continue to accelerate in sustainable growth. Second, we've identified a great opportunity to be able to drive growth in industrial end markets by replacing existing hydraulic systems with our heavy duty springs. We see this particularly in steel mills, HVAC, and white goods end markets. Then finally, with our general industrial business, we see an opportunity to continue to drive growth off the back of infrastructure spend in the United States and general economic recovery. Our teams work very closely with our distribution partners, where we increase the number of product lines that they carry, and we've invested in direct sales and also technical support to be able to educate our distributors so they can better sell our products to their customers. The Force & Motion Control team executes our strategy across using the Barnes Enterprise System, and we've got three pillars here that we focus on. First one is to expand our industrial market share. This is really focused on making sure that we're winning in the very attractive high growth, high margin recovery in the United States. Second, drive automotive growth. As I've already mentioned, being able to make sure that our team continues to win as new EV platforms are released. Finally, diversify our portfolio to make sure that we're winning in non-automotive end markets. Here, particularly, is focused on bringing to market our heavy duty gas springs in markets such as steel mills, HVAC, and white goods. I'd like to now share an example from our Hyson business, where the team worked with a customer to replace their existing hydraulic system with one of our proven ultra high force gas springs, and this was in a steel mill application. Not only was the team able to work closely with the customer to be able to replace the hydraulic system with our gas springs, but we also brought to market a wireless sensors. The wireless sensors were able to provide the customer with real-time actionable data and information. This enabled the customer to be able to have much greater precision in manufacturing, be able to improve their uptime, and reduce their maintenance costs. Provided for us not only an opportunity to win with that one customer, but also provided for us a better aftermarket, and sticky recurring revenue streams, and opens up some wonderful opportunities for us, in industrial applications. I'd like to now turn to our Engineered Components business, which is headquartered in Michigan. Engineered Components goes to market with two brands, Associated Spring, which is a market leader in engineered springs and stamping solutions, and Hänggi, headquartered in Switzerland, which provides solutions in microstamping and fine blanking. Engineered Components as a business brings to market incredible manufacturing expertise, an ability to manufacture incredibly small parts at high volumes, high quality, and repeatability for customers around the world. Engineered Components has had a very strong year on the bounce back of strong market growth and demand in medical and general industrial, while our automotive businesses have been relatively flat as we've continued to have challenges around supply chain and semiconductor constraints. Engineered Components also leverages our enterprise system to execute on our strategy, and the strategy is really focused on winning outside the legacy powertrain. We've got three end markets that we focus on. First of all, next gen automotive, making sure that we bring our expertise to win new applications in electric vehicles and existing automotive platforms. Second, focusing in on industrial, making sure that we're getting a greater share of wallet with our industrial customers and expanding into new industrial end markets. Finally, medical devices. We see a wonderful opportunity for us to continue to be able to bring our skill set to medical device equipment manufacturers throughout the world. We've pulled together a dedicated team focused in on driving growth in that medical space. I'd like to now share an example where our Hänggi team in Switzerland worked with a large European medical device manufacturer to help solve a challenge that they were facing in continuous glucose monitoring. The customer had a challenge around the insertion of a needle where it was creating some pain for the end patients. Our team, through our unique solution, was able to provide a stamp solution on the needle, which not only provided value to the customer, but most importantly, enabled less pain for the patient on insertion of the needle. This opened up for us not just to win with this customer, but also opened up for us opportunities to be able to drive growth more broadly across the medical market with some of our very unique stamping applications and stamping solutions. In summary, the industrial segment, we have four fantastic strategic business units with outstanding technologies and wonderful teams. We have a balanced portfolio that's able to leverage and win on a number of macro end drivers. We are focused on executing our strategy of transforming our portfolio to higher margin, less cyclical end markets of automation, medical, and mobility, and continue to leverage on our enterprise system as our teams execute our strategy and we bring to market pioneering technologies to meet the needs of our customers. Thank you very much, and I'd now like to introduce Mike Beck, the President of Barnes Aerospace. Good morning, everybody. My name's Mike Beck, and I'm the President of Barnes Aerospace. Our strategy is to grow our business above the market return, and we'll do this through the Barnes Enterprise System, creating value for our customers, and also achieve our own productivity targets. We'll ensure financial performance through commercial acumen. In our aerospace business, we manufacture complex and critically important products for our aero engine, nacelle, and structures customers. We run the business through two SBUs, OEM and aftermarket. In the OEM, we focus on machining and fabrications, with the fabrications being high-end hot form and superplastically formed titanium. Our aftermarket business is in two areas, our RSP programs, which is our revenue-sharing programs with GE, where we are sole source on specific spare products for CFM56 and CF6 programs. The other side is our MRO business, where we repair cases, rotatives, seals, and shrouds, the shrouds being our component repair program with GE, where we have a license to sell that business within the market. The aerospace industry is a great industry. Over the last 20 years, it's grown at about 4%-5% annually, powering through challenges such as 9/11, SARS, and the 2008 and 2009 crisis. Post-COVID, it will grow at the similar level as the underlying economics around the middle class wanting to fly and replacing old aircraft still exist. The left-hand chart is Boeing's and Airbus' build schedule over the next few years. The twin aisle is flat during this period of time, so this chart is fundamentally a single-aisle growth chart, which puts us in a great position due to our content. The middle chart is a passenger flying chart, and domestically in the U.S. and in China and in Europe, the industry is nearly back to where it was in 2019. Over this next 6-12 months, it will get there. The twin aisle will come back really quickly once the international COVID restrictions change. From a defense perspective, over the last 12-18 months, we've been winning business in the aftermarket. On the OEM side, we're in a very niche-y area. We manufacture tremendously difficult product for some classified programs. The life cycle of an aircraft or engine can be up to 60 years. Even after the engine goes out of production, there can be 15-20 years left, and the production cycle can be up to 40 years. When we look at this chart from an aftermarket perspective, we're trying to win business on the right-hand side. Engines like the CFM56, Trent 700, the GE90, still have plenty of life left in them. We are not ignoring the left-hand side of the chart as we try and win business on the new aircraft and engines, and we are winning business on LEAP, but the value in this period will be low. From an OEM perspective, over these last 20 years, all the aircraft and engines have been redesigned and redeveloped. No different to when we was here in 2017, to win business, we have to win business from our competition. It doesn't mean that there aren't new programs, but in general, they tend to be smaller. When you go back to 2017, 2018 and 2019, you can see that we achieved growth of about 30%, and we made sure that that revenue growth flowed down to the bottom line. When it came to 2020, we was in a good position and we expected to continue with our growth. Obviously, COVID hit towards the end of Q1, and 2020 became a year of trying to manage our cost base. In 2021, we've been focused on sustaining our performance as the industry gets ready to grow. If you look at the pie chart on the right-hand side, you'll see that the single aisle and the twin aisle aircraft, we have similar volumes on them. We execute our growth strategy through the enterprise system by creating value for our customers. The value that we create are on-time delivery, speed of new products introduction, being a solutions provider, and working with our customers from a technical innovation standpoint through concurrent engineering, where we create value and also enhance our reputation. It's important that our customers recognize that value as well, and we have evidence that they do. We've won supplier performance awards from GE and Safran. We've had letters of recommendation from Rolls-Royce and Boeing and Northrop. It's important they recognize this value because we want to ensure that we price that value, recognizing we still need to be competitive. Then through our operating system, we make sure that our revenue growth hits our bottom line. When we talk about our enterprise system and it creating productivity and performance, I'd just like to take a couple of minutes explaining how we do that. Firstly, we have an operating system where we meet every month at our divisions through to our segment, and we review the same KPIs across the business. We do this through our operating system, where we meet on a monthly basis from our divisions through our segment, reviewing our KPIs to work out if we need to make changes, if we just need to touch the tiller to move things forward, to make sure that we're gonna achieve the performance that we expect. When we do our strategic business reviews in the operating system, we physically visit the businesses 'cause we wanna focus on the time management system while we're there, having skip-level lunches with our people and discussing the war on talent. Our operational excellence process is where we actually execute and achieve the productivity and the performance for the customers. We don't do this from a manufacturing perspective. We do it from a business process perspective, so we plan to be successful. We take the volatility of our customers' requirements and level load them in our factories. We even create inventory on certain programs to make sure that we can support our customers appropriately. We run our business through value streams. We ensure that the lead time of the value stream and the lead time in the system are the same. We ensure the capacity is there, whether it be from a machines or a people to ensure that we can perform. We execute on a daily basis through our Gemba walks, with the expectation that we support our customers on time delivery, as well as our own productivity dropping to our bottom line. Our digital strategy is not standalone. Our digital strategy supports our operations and our business processes. From a smart factory perspective, a couple of years ago, we made the decision that all machines that we buy will be smart, and all products we put on those machines will benefit from a smart process where we can improve productivity. Our smart value stream supports the value stream process I talked about earlier, where we use an alerting system to let us know when the value stream is not working appropriately. We're trying to collect data and use alerting to make better management decisions about our performance and therefore increase our productivity. From a digital ways of working perspective, we're introducing and improving our systems for our functional areas, where we're focused on reducing the person interaction and administration, improving business efficiency, and we also believe in increasing productivity of the factory. If you look at our OEM SBU, as we said previously, 2017, 2018, and 2019 were good years, and 2020 was also gonna be a good financial performance. Unfortunately, COVID hit in the last two weeks of March, and the way we contract with our customers, they have a lot of flexibility, and so the business was hit straight away. In 2021, we've been focused on sustaining that structure and performance for our customers. If you look at the charts in the center, and the 2021 says that our twin aisle and single aisle aircraft are similar volumes as they did in 2019. If you go across to 2025, as we go through this period, our single aisle content is gonna grow to 50% of the business, which will drive our financial performance. Our OEM growth strategy creates value for the customer through operational and technical innovation, which leads us to strong relationships with the customer turning to growth. That's great for existing customers. We also wanna diversify our portfolio, win more defense work, and give us opportunities to win new business with new customers. Not forgetting the fact is that in today's world, we have to win business from our competition. We have examples of that in the past on the 737 MAX program that we won. It was a new customer for Boeing, and we took it from the competition. Our OEM growth strategy is about creating customer value through operational, technical innovation, creating great relationships that leads us to growth. We also wanna diversify our portfolio by winning more defense work and creating opportunities with other customers. We therefore reorganized our sales function to be more customer/account-focused to make sure that we focus on all the customers where we want to win business. Examples of these are the 737 MAX work that we won, where Boeing was a new customer and we won it from competition, and last year's work that we won with GE, where we took the work from competition. An example that I'm gonna take you through is how we managed to achieve growth through operational performance. The background is we won business with a customer with very difficult to manufacture products. The competition were already struggling to manufacture that product. We developed a solution through technical innovation and the competency of our engineering, and we created a manufacturing process that was different to the competition's. We leveraged our Enterprise System through program management and introduced Advanced Product Quality Planning to ensure that we were manufacturing good quality product. Then we implemented smart factory to make sure that we can control this process, deliver appropriately, and achieve our productivity. The result was a program that the customer uses best-in-class, as an example, with their customer. We believe that as we go forward, due to our performance and our quality of the product, we will get more share than what we're contracted to. We have evidence of this previously where we've won business at 50% and we now make 100% of that business. From an aftermarket perspective, you know, again, 2017 and 2018 were really good years. 2019 was a really good year for our aftermarket business, and we were gonna continue into 2020 was in a good position. When you look at 2021 and wonder why is the aftermarket reducing revenue? The real answer is because COVID hit the aftermarket after it hit the OEM and that there was a lag in the system, engines were being overhauled. We got through April and even the first part of May before COVID harmed the business. If you look at the middle chart on the pie chart, it shows you that the single aisle, which for us is the CFM56 engine, is more than 50% of our business, so fundamentally important. On the left-hand side chart is the shop visit chart for the CFM56. The shop visit is where the engine is taken into the overhaul shop to start the process. There are 23,000 CFM56 engines out there, and if we remember back to the previous chart where we talked about the domestic flights in the U.S., China, and Europe getting back to normal, you can see the natural growth that's within the organization. The CFM56 is probably not gonna get to its peak until past 2025, and that peak is gonna be more like a plateau. It will go across a number of years. On the right-hand side is the shop visit forecast for the rest of the commercial business, and we do work on many of our engines. If operational performance is important to our OEM side of the business, it's critical for the aftermarket to create the relationships that's necessary to grow our business appropriately. The OEMs have tremendous influence over the aftermarket, and we are building relationships with the OEMs to negotiate large deals where we not just become a purchase order to purchase order supplier, but we become part of the OEM's aftermarket value stream, where every time they win business, we get our share of that business. We are also selling a regional play to our customers where we have a business in Connecticut, North America and Singapore that have very similar capabilities. The offering to our customers is we can repair their products in either of our facilities, wherever their engine is in the world. By achieving this revenue growth using the operating system, I think we've demonstrated previously we drive it to the bottom line. Another example in our aftermarket of operational performance leading to growth, I think from a background perspective, our customers compete on turnaround time. By supporting our customers on turnaround time, we build our relationship. We invested in technology and to in-source a differentiated special process. We then invested in technology and around innovation of how we manufacture product to repair the product different to anybody else. We focused on operational excellence to make sure that our value streams work as smooth as possible. The result being our quality is better than the competition's. We've reduced our turnaround time by 30%, and our sales function are out there today selling that capability to the customers to expand our share of the market. The key takeaways are we are poised for growth, whether it be in the OEM through the single aisle and our content or through the aftermarket and the CFM56 through RSP, CRP and MRO. Our operating system will ensure our revenue growth turns into profit. Thank you for your time. I'll now pass you over to Julie Streich, our SVP, Finance and CFO. Thank you, Mike, and good morning, everyone. My name is Julie Streich, and I'm the Chief Financial Officer at Barnes. I joined the organization seven months ago, bringing with me more than 25 years of industry experience, two-thirds of which have been in the manufacturing sector with companies such as Pentair, MeadWestvaco, and Menasha Corporation. In addition to manufacturing, I have experience in energy and financial services sectors. However, manufacturing is where I feel at home, and I couldn't be happier to be part of the Barnes team. You've already taken in a lot of great information today, and I'm gonna add to that list. My ask is that if you take anything away from this section, it's these four key messages. First, Barnes has a culture of excellence and innovation that creates value. Our purpose, to advance what's possible in the relentless pursuit of next, is a lot more than words on a page. We have almost a 165-year history of evolving to meet market needs and create enduring value for our shareholders. Second, built off the Barnes Enterprise System, we consistently deliver strong execution and cash generation that enable organizational agility. Third, our balance sheet is well positioned to support the investments for growth you've been hearing about from my colleagues across the course of the morning. Finally, we have followed and will continue to follow a disciplined, prioritized capital allocation methodology. As a new member of the organization, I often receive questions about, you know, what are your observations? What have you noticed? I thought I'd take a moment to share a couple of those with you this morning. First, Barnes is a well-controlled organization. The team is engaged and committed to driving profitable growth. As I've spent time at our facilities, both domestically and internationally, the awareness of our strategic objectives and the passion that I've seen across the team has been quite amazing. In addition, my experience is that we have a culture of integrity, transparency, and accountability that makes a difference. There's a level of openness and candor, a willingness to challenge and be challenged that not only creates greater buy-in to the decisions we make, but more conviction around those. Honestly, I think that's one of the elements that's at the heart of Barnes' history of successful evolution. My final observation is we know where we need to focus. As an example, we know investments in technology and innovation are fundamental to helping us achieve our long-term growth objectives, and we're making those investments as we speak. Transitioning to financial performance, we expect our net sales to be up approximately 12% year-over-year, a nice increase from the lows we saw in 2020, but not back to pre-pandemic levels, largely driven by the protracted recovery in the aerospace markets and the headwinds many of our industrial customers continue to face in the form of supply chain and semiconductor. From a margin perspective, we anticipate adjusted operating margins to be about 12%. I have received several questions about our in-year margin performance, so I wanted to take a moment to provide some context. First, our margins are being impacted by a change in the richness of mix we're seeing in our aerospace business. As Mike mentioned, aftermarket sales, which is the more profitable segment within aerospace, are down year-over-year. Second, we're realizing inflationary pressures in our industrial business. Third, as Patrick and I have mentioned in both our Q2 and Q3 earnings calls, we have made very deliberate choices to make investments for growth coming out of the pandemic. In terms of order of magnitude, those will have an impact of approximately 100 basis points in year. From an EPS perspective, we expect adjusted EPS to be in the $1.83-$1.93 range. However, in light of increased market volatility and higher than forecast inflationary pressures, we now expect to come in at the lower end of that range. Earlier this month, we did receive positive affirmation on a foreign tax matter that will contribute to EPS in year, partially offsetting the shortfalls driven by this higher volatility. Looking at cash, we expected adjusted cash from operations to land at approximately $156 million, of which we intend to deploy approximately $40 million in the form of CapEx to our businesses, resulting in adjusted free cash flow of $116 million and cash conversion of 120%, which I'd like to point out towards maintenance. Second, we look to deploy capital in pursuit of strategic acquisitions. As Lukas mentioned, there is a rigorous process we go through before making a choice to deploy capital to that extent to help give us the greatest confidence that we'll return the value we expect through making the investment. Finally, we return cash to shareholders. As Patrick mentioned, but it's worth reiterating, we have paid dividends, including during the pandemic, consistently to our shareholders for 87 years. Shifting now to our 2025 financial targets. We look to deliver compound annual growth of organic sales in the 7%-9% range, adjusted operating margins of 15%-17%, double-digit compound annual growth for our EPS. We expect to maintain cash conversion at greater than 100%, and ROIC will land within the 8%-10% range. From a modeling perspective, it's important to note that we're holding CapEx as a percentage of sales constant at around 4%. Our foreign exchange rate is consistent throughout the plan horizon with our 2021 estimates which peg the euro at approximately $1.15. Our tax rate should hover between 26%-27%, and our average diluted shares outstanding remain constant at approximately 51 million shares. As per normal, there are no acquisitions assumed in our targets. Getting underneath the numbers a little bit, what does that compound annual growth translate to? We're looking at about $400 million-$500 million or 38% at the high end of the range in revenue growth over the next four years, and an increase of adjusted operating margins in the range of 300-500 basis points. Certainly robust growth, but growth that we believe is deliverable and within reach. What gives us the confidence in our ability to deliver against these targets, and what should give you the confidence in our ability to deliver as well? We expect to benefit from market tailwinds over the course of the plan horizon. First, the aerospace rebound that Mike alluded to will certainly drive support towards achieving these targets. Second, our industrial businesses are well-positioned to benefit from what we anticipate will be an acceleration in the launch of EV programs. Finally, as the aerospace market rebounds, we will see a restoration of our legacy product mix in that the aftermarket component will play a bigger role, also giving a lift to our overall margin performance. Achieving these targets is also dependent upon successful execution of our strategic objectives, which include expansion into high growth, high margin markets, reaping the benefits of the investments we've made in product and process innovation, continuing to enhance our commercial excellence and customer intimacy, as well as capturing the productivity driven by the Barnes Enterprise System. In summary, and before I transition over to Patrick for closing remarks, I'd like to come full circle to the four key messages that I started with at the beginning of my commentary. First, Barnes has a culture of excellence and innovation to create value. Second, we consistently demonstrate strong operational excellence and cash generation. Third, our balance sheet is well positioned to support the investments for growth you've heard about over the course of the day. Fourth, we have and will continue to follow a disciplined, prioritized approach to capital allocation. Thank you very much for your time this morning. Patrick, over to you. Once again, thank you for joining us today and for your continued interest in Barnes. Let me recap on the key messages that I'd like you to take away from our presentation today. First, that our portfolio of businesses are well-positioned with unique, sustainable, competitive advantages. You heard from Mike Beck and Stephen Moule how they're driving their businesses for accelerated growth. We believe the aerospace aftermarket business is positioned for a nice rebound. You heard from Steve how he's positioning the industrial businesses to expand into end markets such as medical and automation. From all of our leaders, you've heard about the Barnes Enterprise System and how we're using it as our total operating system to drive excellence into everything we do. Third, our relentless focus on innovation. You heard from Pat Hurley how we're continuing to expand our capabilities and our ecosystem to drive intelligence into our products and services. Fourth, to achieve our goals, we recognize that we need great talent. To that end, we're investing in our talent management system. You heard from Dawn Edwards how we continue to digitize HR and to expand platforms such as Barnes Works to attract new talent to our organization. Finally, through all of our initiatives, we're clearly focused on creating sustainable value for all of our stakeholders, our employees, our customers, our shareholders, and our communities. Julie Streich shared with you our 2025 financial targets, and if there's one thing I want to leave you with, it's the fact that I hope you realize that having heard from each member of our senior leadership team, that we're committed as a team to making those targets become a reality. With that, I'll pass this over now to the next Q&A session. Welcome, everyone, to our second Q&A session. A lot of the focus on questions received so far have been on industrial. Let me start with a question, high-level question, from Chris Glynn to Stephen Moule. Chris wants to know, in order to understand future margin targets, it helps to understand the past. He's interested in some dialogue about how our revenues are up relative to where they were a few years ago, though operating profits and margins are down, and what some of the contributors to that might be. Okay. Yeah. Good question. Thanks. Look, as we look at the industrial business, first of all, let me say that an outstanding portfolio of businesses, and we're super confident on our ability to continue to meet those margin expansion targets that we've put out for 2025, particularly as we think about executing against our Barnes Enterprise System, and then focus on what was talked a little bit about earlier today around moving to those higher margin, less cyclical end markets and the focus that we've got on automation, medical, and capturing some of the tailwinds that we see in electric vehicles, and the platform that Pat talked about building out digital and the connected and software recurring revenue stream. So I think we see that, and we're confident on that. I think in looking back at margin, and maybe there's a couple of pieces I'll touch on there. First of all, I think we look at 2016 as a time when there was a peak on new vehicle program launches, which was very positive in terms of revenue and margin to our Synventive and our Force & Motion Control business. So we saw some the peaks there. I think as we look going forward, we see something similar coming with electric vehicles and some of the tailwinds that we talked about earlier about electric vehicles coming, and that being a wonderful opportunity for us to continue to see some of that margin expansion. I think in some of the short term here and pressures that we've seen, and we referenced it earlier, there's a few things I'd probably highlight. First of all, we've seen some inflation, around $8 million of inflation pressures, Patrick mentioned, and we're working to offset those. We've also been pretty purposeful about where we've invested, and we've invested around $10 million in innovation, setting out and building the platforms that Pat talked about to set us up for these digital connected devices. We've been very purposeful in investing there in innovation for today for that future growth, that high margin growth that we see in the future. We've also invested in building out our growth engine. We're making very purposeful investments in our sales and marketing capabilities to make sure that we're set up to win the growth that we're seeing in automation, the growth that we're seeing in medical, and also make sure we're capturing that growth in electric vehicles. Then I'd probably highlight a little bit of productivity. I think we're seeing a little bit of productivity pressure as we've been bringing to market new products in that medical space, you know, learning a little bit about bringing those to market. A little bit of pressure there. Look, I step back, and I think what's important for us is we've seen some short-term pressure on some margins. Teams are working very hard at executing, again, offsetting those. We've been purposeful in our focus on investing in growth for the future. I think we're seeing that tailwind of electric vehicles, new program releases coming should see us continue to drive margin expansion. Great. A little bit more of a tactical approach to that question, and I'll direct this to Julie. This is a question from Michael Ciarmoli of Truist. Can you discuss what drove the downward revision to your 2021 outlook? Specifically, what has changed in the past 40 days to have a negative impact on margins? Was it contained to Industrial, Aerospace, or both? Thank you very much for the question. Building on a lot of the comments that Steve already made, what we've seen in the last 40 days is a heightened level of headwinds from the marketplace impacting our demand. I think at the end of Q3, we indicated we expected semiconductor pushouts to be around $18 million for the year, and those have already hit the $20 million mark. That's certainly one factor. In addition, we are seeing higher inflationary pressures than we anticipated, which is contributing. Finally, there are a few things that are contributing to what we call productivity, but what would I say productivity is? We've made conscious choices to incur higher freight expense to expedite materials and ensure on-time delivery for our customers, keeping our customers' needs front and center in our mind. Secondarily, we are seeing recently a spike in COVID-related labor challenges at some of our facilities, which is truly impacting our productivity. Those are the primary drivers, and it has been largely concentrated in the industrial space. Great. Another question that's somewhat related to margin profile, and this question is coming from a number of folks, Matt Summerville, Myles Walton, Garo Norian. Can you help me understand the margin targets in the current plan that are below the margin targets sent out in the 2017 investor day, particularly considering the portfolio changes over the past few years and the broad improvement in IP is reflected in the increased patents that the company has? Sure. Well, thanks, guys, and there's a lot to unpick in that question. I think it goes without saying that since 2017 and that investor day, quite a bit has changed in the marketplace and overall. One thing that hasn't changed is Barnes' ability to generate strong above-average profits. That said, where we sit today relative to 2017, our margins are at a lower level, largely driven, really holistically driven by the pandemic. That is certainly one of the factors that's underlying where our trajectory is headed. As we look over the plan horizon, while we have confidence in market recoveries, we understand the protracted nature of the potential recovery in the aerospace markets, which is factoring into our thinking. In putting forward our new targets, we wanted to come forward with something we have confidence in our ability to deliver. Although we certainly are aspiring and aiming towards outperformance and hitting the levels you would have seen in the 2017 timeframe. Great. Now some questions on end markets. Let's start with Synventive, Steve. This is a question from Christopher Glynn. Since the prior peak of new model activity in 2016 to 2018 timeframe, how have the competitive dynamics changed or evolved regionally? Yeah, appreciate the question. Look, I think as you look at Synventive, and more broadly at some of our automotive markets and businesses. Look, I think what we saw was a peak in new program releases in 2016, and then that tapered off. As we sit here today and looking forward, we see that electric vehicle and the investments coming in from new and existing OEMs in new EV platforms representing for Synventive, but also representing for our Force & Motion Control business, some really nice growth. I think we see really nice growth opportunities ahead of us. I think if we look at that regionally, we remain pretty positive around the opportunities that we're seeing both in North America, Asia, and also in Europe. We're focused very much on bringing our products to market, looking after our customers, making sure that we're going to really leverage and capture some of those tailwinds that we see around the world with the new EV platforms that are being released. Great. Somewhat of a related question from Pete Skibitski at Alembic. What's embedded in your industrial guidance midterm for automotive model changeovers? We've got. As we look at automotive and new program releases, I think we look at the market at sort of that mid-single-digit type growth rate is what we're looking at, and we expect to outperform that with our businesses that are really market leaders. I point there to both our Synventive business and in our Force & Motion Control there, where we see ourselves being able to outperform the market. We're well set up in terms of not just our product ranges, our end market customers, but also that end market sales, technical support. That means we're close to customers, we're able to meet their needs, react fast, as they come and ask us, and we work with them. You know, we expect to outperform and capitalize off those tailwinds. Great. Let's move to a couple questions now on aerospace. Primarily related to the aftermarket. Mike, here's a question from Mike Ciarmoli of Truist Securities. On the CFM56 and LEAP, do you anticipate that your share on the LEAP in terms of shop visits will be equivalent to the CFM56, or should we expect a headwind as the CFM visits flatten and decline after 2025? I think it's important that we recognize that LEAP and CFM 56 are both tremendously important to our organization. In this financial period, LEAP, basically from an OEM perspective and the content that we have on it, is gonna help our financial performance. CFM 56, again, has got growth through the financial period, just through the single-aisle flights and as we recover post-COVID. CFM will not get to its peak until probably after this financial period, and the peak will be more of a plateau. It's gonna stay flattish for a number of years. CFM 56, based on the volume that we have in RSP, CRP, and our MRO, will be a substantial element of our financial performance through the end of this decade. That doesn't mean we're ignoring LEAP. We are winning business on LEAP. LEAP aftermarket today again in this financial period is not gonna be high value. These are brand new engines. The repairs that we're gonna be doing are gonna be very light. We continue to work with GE and Safran on LEAP opportunities. We're trying to win those opportunities now, so when the stronger, more higher value repairs come on later on, we'll be in the same place. We expect to continue working with similar customers and growing our volume through this period, and there will be a natural transition from CFM56 to LEAP. Like the life cycle chart that I showed, it's gonna take many years. Great. Somewhat of a follow on here from Lou Raffetto from UBS. In aerospace, leading customers for the aftermarket show more than just GE, CFM, Safran. He's curious how other names like Rolls-Royce and Pratt flow through our aftermarket. Yeah. I mean, we obviously talk about the bigger customers, but Rolls-Royce is a very important customer in our aftermarket, as is Pratt & Whitney, Lockheed Martin, all the independent overhaul shops. I think the aftermarket is more of a diversified market from a customer standpoint, and we are working with the customers where we believe that we add value to their product. Great. Julie, let me ask you a question here that's come in from a couple of folks. Can you break down the 2025 revenue and operating profit targets by segment? Certainly. Thanks again for the question. How we're looking at the growth is we would anticipate to see relatively consistent growth between our Aerospace and our Industrial markets, slightly skewed towards Aerospace as it will benefit from the recovery that we talked about throughout the course of the morning. From a margin perspective, we're looking at Aerospace to land in the low 20s%, consistent with our pre-pandemic levels. Excuse me, the Industrial side would then be in the mid-teens range. Great. Back to Industrial now. Thinking about electric vehicles, I believe there are some puts and takes that you have within your segment. Can you lay out where you see upside from EVs, where there could be some headwinds in other places? Yeah. A great question. I appreciate the question. I think as we look at our automotive portfolio and we think about some of the tailwinds with electric vehicle programs, then you see that in Synventive, also with our Force & Motion Control business. It's our Hyson and KALLER brands. Some really nice tailwinds there as we see new programs being released and that uptick in new programs. There we see good tailwinds, market leaders should capitalize or will capitalize on that. That represents great growth opportunities for us and good high margin as well. On the headwind side, that's probably a little bit more to our Engineered Components business. And there the team are very much focused on continuing to win in new applications and doing a really great job. I think as we look at new EVs coming in, we see a long tail decline on IC engine. Our team are continuing to get ahead of that today and doing a really nice job of getting ahead of it. That requires us to continue to win not only new applications in electric vehicles and new applications across broader vehicle platforms, but also the work the team's doing in winning in general industrial and winning in medical. I think if you looked at our new business wins this year, we've got a higher new business win portion outside of that legacy powertrain. We're ahead of that. The team are really doing a nice job of executing to make sure that we're gonna offset that decline and on the other side, make sure we're winning off the tailwinds that we see coming into Force & Motion Control and Synventive. Great. Another question for you, Steve, from Chris Glynn. What's Gimatic's profit profile versus when acquired, and how are you managing the current competitive economic system now versus when you acquired that business? Appreciate the question. Do you know what I mean? Gimatic is obviously our main business inside of our automation portfolio. I think at the time of acquisition, we talked about that sort of EBITDA range of about $40+. Today, we're broadly in that range. We're a couple of points off that, but in that range, and that's been pretty purposeful about how we've thought about investing for growth. We saw this year really strong growth and demand for automation. To make sure that we're well set up to be able to capitalize, serve our customers around the world, we've continued to invest in Gimatic. That investment, I'd highlight a couple of things. One, what Patrick mentioned earlier around the new product range of vacuum cups, that opens up for us somewhere in a range of around about a $1 billion market opportunity or TAM that we see, and full product range for us to capitalize there. We've invested there. The other side, we keep investing in our direct automation centers. We have 16 around the world, making sure that we're able to both service our customers, sales, technical support, and provide our solutions in these fast-growing markets. We've continued to invest and be purposeful about that. We see really great tailwind opportunities across automation, and the Gimatic team is well set up to capitalize off those based off the investments that we're making. Great. A bit of a high-level strategy question. Patrick, I'll address this one to you. Why is the current group of industrial SBUs better together? What synergies do you have and can you leverage? Would you be better served with a more focused industrial portfolio? Well, as I look at the industrial portfolio today, what I would highlight is that, you know, we look at them as to where are the common set of attributes that we can leverage across the portfolio. That may be operationally, it may be through sales, it may be through the back office functions. While on the surface they may be serving different end markets, I would highlight that we look to leverage the Barnes Enterprise System to look for those common attributes that we can collectively leverage. I highlighted just one example, which was, as we've taken in Molding Solutions and continue to build out that platform and the focus that Steve and his team are putting on medical, as we've opened up those contacts and relationships with medical customers, we realized that other parts of our portfolio are actually equally as attractive to those customers, and yet we didn't have those relationships in the past. That might be one example. The other example I would highlight is that when we think about digitalization, we think of it not as one business, but against the entire portfolio. That spans whether it's industrial or aerospace. Both businesses are taking a very unique approach. Mike and his team are looking at the internal operations side of the house through the Smart Connected Factory, and he and his team are taking the lead there, while Steve is taking the lead in terms of the customer-facing digitalization of activities, as you heard from Pat earlier. With the businesses, while there may be uniqueness in terms of the end markets or the customers they're serving, we look to leverage through the enterprise system all of the attributes that allow us to position them for future growth. Great. Mike, another question for you. What's your strategy for gaining new content in the aerospace OEM market, and how are the prospects there? Also, do you see more opportunities to gain content in the aerospace aftermarket? Our strategy to win business is to perform for our customers, to solve problems for them, and to help them achieve their expectations. I think as we did from 2017 to where we are now, it was no different then as regards the reduction of new programs to win business on. We're having to win business on existing programs. I think we're at a point now where we have a relationship with customers, where customers actually approach us on product they want us to make for them, and notwithstanding the fact we've always got to be competitive, but that is a great position to be in, where customers trust us when they have a problem with a competitor or someone else in the industry, that they'll come to us and talk about it. We fundamentally have a strong pipeline at the moment of different opportunity with different customers, where it's more about moving work because of either operational or financial challenges that the customer feel that they have. From the aftermarket perspective, I think we're in a great position to grow, and we're actually gonna expand some of our facilities to make sure we're ready for that growth, as we diversify a little bit across the portfolio. Great, thank. Bill, I might just add to that, Mike, you know, one item that, you know, you didn't probably mention was the great deal that you signed up in last year in the middle of the pandemic in 2020. That was an example of just what you've highlighted, which is that Mike and his team have expanded the share on existing contracts that we have, as well as one new business, as a result of your performance and the performance of the team. It speaks volumes. That was a $700 million deal, of which that volume will not be realized, you know, for a few years to come. Partially in the plan horizon, but beyond that as well. Yeah. Fifty percent of that deal was new business, and 50% was an extension. Well, that extension and the new business goes through 2032, so it creates a great foundation for the business to grow on. Excellent. Julie, a question coming in for you. You've indicated in the past, SG&A optimization as a goal. What level of SG&A do you assume in your 2025 financial targets? Are there any cost initiatives assumed in that forecast in order to reach the targets? Yeah, thank you for the question. We look and think about SG&A, what I'd first point to is Barnes' hallmark of the enterprise system. I'm sure people may tire of us talking about it, but it's such a part of our culture. We look across the plan horizon and look at SG&A, just like we would look at any other form of operating expense or our manufacturing expense, we're constantly asking ourselves, how do we optimize our spend? How do we position our dollars to the place that has the potential to create the greatest value? That's what we've done over our plan horizon. At present, our operating, our SG&A, excuse me, as a percent of sales is slightly elevated to historic levels as a result of coming out of the pandemic. We took significant cost reduction activities as part of the pandemic, but still need to maintain an acceptable level and have made investments for growth throughout the course of the year. Over the plan horizon, we would expect those to come back into more historic levels and continue to use the enterprise system as a method to drive and monitor our SG&A. Steve, speaking of some investments in sales and marketing, a question has come in. Are growth investments masking the underlying margin improvement in the industrial business? Absent the heightened growth investments, what would your industrial operating margin be? Okay. Yeah. Appreciate that question. Yeah, I guess to some extent, of course they are. We are investing in our growth investments, be that through our digital platforms and also in our go-to-market and building out our commercial strength. I think if we look at what that does to us, it's around about 100 basis points is about the impact that we would see masking our underlying margins. Great. Julie, a question for you from Myles Walton. What is the R&D as a percent of sales in the long range and the long-range margin target? Should that, as a percent of sales, decline towards 1%-1.5% of sales? Thanks for the question, Myles. As we're looking over the plan horizon, our R&D as a percentage of sales is in the, you know, 1.5% range, and we anticipate that will remain consistent as we continue to invest for growth over the long term. Patrick, a question here I'll send your way: What are the biggest risks to Barnes achieving its 2025 goals? And alternatively, what could you accelerate to help your ability to achieve these goals? I think the biggest risk as we sit here today is, you know, the pandemic that we're currently experiencing, and if that was to become more protracted through, you know, the discovery of more variants. That said, and the reason, of course, that would impact, potentially could act as a headwind in the short term, hopefully in the short term if it's manifested at all is, you know, as a result of the impact on various economies. All in, I think for the most part, our position as a management team is that we need to focus on what we control. The exogenous events like the pandemic are outside of our control, so subsequently, you know, we need to, you know, respond to them. We can't be immune to them, but at the same time, we need to focus on the levers that we can pull as an organization and as a team to drive accelerated growth. To that end, I think the opportunities ahead of us within both Mike and Steve's businesses, I think, what might help accelerate it is a faster rebound to aerospace than anticipated. Again, I think that's connected to the pandemic and the rate of vaccination. I would point out that, you know, I think we've, everybody's been pleasantly surprised at the rate at which domestic travel is coming back. You know, just, from my own experiences now, anytime I'm in an airport, you know, you're shoulder to shoulder with the passenger traffic in the hallways. So that bodes well for, you know, continued recovery. The most recent announcement around the opening up of our borders to, you know, Europe will now start to propel forward the international travel, which I think will also, you know, hopefully accelerate forward, the recovery of the aerospace industry. On the industrial side, the rate at which EVs are being adopted, I think offers great opportunity for our, you know, Synventive and FMC businesses. A number of factors, some which are, you know, could be more elevated in terms of the recovery. Others, I think are going to remain steady, such as medical. I think that'll just be consistent growth. I don't expect spikes there per se, but I do feel that as the teams continue to look at new adjacent, segments of medical, that could open up new opportunities to allow us to grow faster as well. Great. Mike, a question for you. What are your plans for capital deployment in aerospace? Do recent market disruption create opportunities that weren't available previously? Yeah. I think going back to Lukas's presentation, our acquisition strategy lies around Molding Solutions and automation. In aerospace, we're focused on organic growth. I think that we've demonstrated before that we can do that. I think we have lots of opportunity and lots of capacity to grow within the facilities that we've got, that we don't need to make any acquisitions in aerospace. I think we're gonna be successful based on the plan that we have. Great. Can I just add to that, as you mentioned, Mike, you know, as we do look at opportunities in aerospace, right now what we're looking at is making investments in the form of CapEx with respect to both facilities and equipment in anticipation of the rebound. We're looking to be one step ahead of it, and I think that's, again, an area Mike and the team have, you know, been very proactive and very visionary in terms of, you know, anticipating the rebound. Great. Julie, a question for you, and this is with the knowledge that we're not intending to give 2022 guidance at this meeting. With regard to the fourth quarter updated outlook, on the lower end of the guidance revenues for revenues in Aerospace, how should we consider the more pronounced effect of these factors as they linger into 2022? How should we think about incremental margins in 2022? The first thing I would point out is that the headwinds we're facing in the fourth quarter, we consider transitory. They're in no way a symptom or a sign of anything underlying in the business. I think that's an important message to take away. In terms of the duration, we expect that we would see headwinds through the first half of the year. There's signs and, you know, information is changing every day, right? But there are signs that things are starting to get slightly better. In the first quarter, we would still anticipate a stronger headwind than hopefully we would see in the second quarter. In terms of incremental margins for the year, we, as Bill mentioned, will not be providing guidance today, but certainly, we anticipate 2022 will be the first of many consecutive years of margin expansion as we go across the plan horizon. Great. What I might just add to Julie's comment is that, you know, we look at our automotive end market in general and production. What was interesting was that as we came into this year, the anticipation was that auto production would be up somewhere in the mid-teens. 14%, I think, was what was the outlook at the start of 2021. Right now, the outlook is to be flat. I think you know that speaks to the supply chain issues, particularly with semiconductors. However, the good news is that as now we look out into 2022 and some of those supply chain issues start to subside, the outlook for automotive is 10% growth in 2022. Again, I think our businesses will benefit from that across the industrial portfolio. Again, it's an opportunity for, you know, again, increased growth and improvement in margins as we move into the new year. Along those lines, Garo submitted another question. I'll direct this one to you, Steve. Do you have an estimate as to the negative profit impact from the disruptions in the auto space? I know we've talked about semiconductor shortages having an impact. Yeah, I mean, appreciate the question. Look, in terms of how we're thinking about that impact to us, you know, we've seen about $20 million through the year of push out of revenue related to semiconductors pushing out in our automotive businesses. That's represented, you know, a significant headwind that we didn't see as we came into the year. Great. Julie, a question I'll direct your way. This is from Matt Summerville. How do you think about the inflation supply chain impact in 2021, and how should we be thinking about that in the price cost relationship in 2022? Referring back to 2021 first, thanks again for the question. We are looking at the $8 million range of impact in year. As Patrick mentioned in his comments in the first Q&A session, while we've been very successful passing through raw material and covering raw material inflation, the freight inflation is the component that we are sometimes consciously making decisions to incur in light of serving our customers and therefore don't pass along. As we think about what dynamics would change that would impact this in 2022, to the extent we still have those headwinds we just talked about in the first quarter to first half of the year, we may see some heightened freight. Although we would expect from the material perspective that we will continue deploy strategies when we're writing new contracts. We would anticipate the cost of materials, build those into the contracts, and as we bring on new business, make every effort to cover the heightened expense with our contract negotiations, in turn, not having a negative impact on margins. There may be some volatility that wasn't baked into our plan. We can only wait and see how that comes out in the first quarter and first half of the year. Great. Julie, another question for you. In terms of share repurchases, how do you define opportunistic? Is it based on price level or relative opportunities? If there was a lack of acquisition opportunities in the near term, would you consider a larger share repurchase program? Right. Thanks for the question. Again, to reiterate how we deploy our capital, first, it is to focus on organic growth, which is what we have done. Second is to pursue acquisitions. As we heard from the number of questions in the first session and from Lukas and Patrick, there's a lot of interest in growth through acquisition. Then third would be those opportunistic share purchases. If we were to do that, we would look at the calculated intrinsic value of our shares and make a decision around whether that was the best way to deploy capital in terms of generating long-term value for our shareholders. Great. There's one more question here. It's a great one to end on. Patrick, why does it make sense for an investor to buy Barnes at the present time? What actions have you considered to drive the share price higher in this environment? Great. Well, thank you for the question. Again, thanks everyone for their time. What I would highlight is that, you know, hopefully, what we've achieved this morning is to share with you some of the exciting things that are happening here at Barnes. You know, to a person, you've heard from each one of the senior leadership team about the initiatives they're driving with a sole focus on driving profitable growth. I would just point to some of the exciting aspects of aerospace with Mike and his team, which is around the aftermarket, about expanding our capabilities in aftermarket, continuing to seek out those deals that position us for future growth. On the OEM side, I mentioned the $700 million deal in the midst of the pandemic, but that's just, again, one example of the many negotiations that are ongoing. Mike distinguishing himself through performance in the aerospace business, and that, I think, speaks volumes to the partnerships and the long-term relationships we've built with our customers within that end market. On the industrial side, I think you've heard over the course of the morning about the many opportunities, whether they're in the medical end markets we're serving, the unique capabilities that we bring for medical devices, and now our most recent entry into IVD markets. Also within our automation business, the exciting aspects of where we are with respect to the epicenter of automation centers on robotics. Our end-of-arm tooling systems as well as our gripper technology, I think position us wonderfully for to capitalize on that market as it continues to grow. Last but not least, the other market that I think you heard a lot about is electrification of vehicles. That, again, puts our businesses in a wonderful place relative to, you know, our unique technologies and the capabilities that we bring to market. Each of our businesses being market leaders for the most part in the end markets that they serve, I think that all bodes well for the bright future ahead of Barnes. I think, you know, the team here collectively is excited to make it happen. Great. With that, we'll close out our 2021 Virtual Investor Day, and we look forward to speaking with you all next with our February earnings call. Great.